2010 ANZ Ngāi Tahu
Financial Knowledge
Survey
PREPARED FOR Te Rūnanga o Ngāi Tahu
ATTENTION Andrew Scott or Teone Sciascia
ISSUE DATE August 2010
CONTACT[S] Jocelyn Rout or Leilani Liew
Auckland
Colmar Brunton House 6-10 The Strand
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Table of Contents
Executive summary ................................................................ 1
Research method ....................................................................... 1
Construction of financial knowledge groups ................................... 1
Summary of findings................................................................... 1
Conclusions........................................................................... 10
Background and objectives ...................................................11
What is financial knowledge and why is it important? ....................11
How financial knowledge was measured.......................................11
Research methodology ..........................................................14
Detailed findings....................................................................16
Financial knowledge groups ........................................................16
Areas of highest knowledge and lowest knowledge........................26
Behaviours................................................................................29
Attitudes ..................................................................................33
Current financial situation...........................................................37
Financial advice.........................................................................44
Financial product ownership .......................................................51
Money management ..................................................................54
Budgeting.................................................................................75
Goal setting, long term goals, financial planning............................79
Debt management.....................................................................82
Home loans/mortgages ..............................................................86
Managing risk ...........................................................................95
Saving......................................................................................97
Retirement planning ................................................................103
Investing ................................................................................113
Consumer rights and responsibilities ..........................................119
KiwiSaver ...............................................................................121
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Executive summary
This report presents the results of the financial knowledge survey of 400 Ngāi Tahu iwi members.
Colmar Brunton was commissioned to conduct this research for and in partnership with Te Rūnanga o
Ngāi Tahu (and with the support of the Retirement Commission).
This ANZ Ngāi Tahu Financial Knowledge Survey follows the 2009 ANZ Retirement Commission
Financial Knowledge Survey which provided a national overview of the financial knowledge of New
Zealanders. Comparisons between the Ngāi Tahu survey results and the New Zealand results
(national average) have been made in this report.
The purpose of the Ngāi Tahu survey is to:
� establish a benchmark of financial knowledge among Ngāi Tahu members against which future comparisons can be made to evaluate initiatives introduced to improve the financial literacy of Ngāi Tahu members.
� enable the financial knowledge of Ngāi Tahu members to be benchmarked against that of all adult New Zealanders.
Research method
A partnership approach between Colmar Brunton and Te Rūnanga o Ngāi Tahu (Te Rūnanga) was
used in conducting this survey. Colmar Brunton undertook the design of the survey, trained and
supervised the interviewers from Te Rūnanga, processed the data and undertook the analysis and
reporting. The trained members of Ngāi Tahu carried out the interviews.
A total of 400 Ngāi Tahu iwi members aged 18 years or over participated in the research between the
5th of April and the 18th of June 2010. All interviews were conducted face-to-face in nine main
regions. To reflect characteristics of the population of interest, the data have been weighted by Whai
Rawa membership (Te Rūnanga’s saving initiative).
Construction of financial knowledge groups
In 2009, Colmar Brunton conducted a survey on behalf of the Retirement Commission to assess the
financial knowledge of New Zealanders. Using a constructed financial knowledge score (FKS),
respondents were grouped by their level of knowledge into three categories (tritiles): ‘Low
knowledge’, ‘Medium knowledge’ and ‘High knowledge’.
To look at the more extreme ends of the knowledge scale, two further groups were constructed: the
Lowest knowledge group (a subset of the Low knowledge group) and the Advanced knowledge group
(advanced knowledge points were assigned to predominantly investment related questions).
Using the same FKS definitions, knowledge groups for the 2010 ANZ Ngāi Tahu Financial Knowledge
survey were constructed allowing comparisons to be made between Ngāi Tahu’s financial knowledge
and the general New Zealand population.
Summary of findings
Financial knowledge groups
� The financial knowledge of Ngāi Tahu is consistent with the national results with 40% of respondents in the High knowledge group, 31% in the Medium knowledge group, and 29% in the Low knowledge group.
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� Similarly, the sizes of the Lowest knowledge group (10%) and the Advanced knowledge group (19%) are also consistent with the national results.
� The Lowest knowledge group is characterised by:
- those aged 18-34 year olds and 65 or over
- those with primary or basic education
- those who are renting
- those not in paid employment
- those with low personal income.
� Financial knowledge among Whai Rawa members tends to be higher than non-members with 45% of Whai Rawa members in the High knowledge group compared to only 36% of non-members.
Areas of highest knowledge and lowest knowledge
� Whai Rawa members tend to score higher than non-Whai Rawa members on most areas of financial knowledge.
Behaviours
� When respondents were asked to select a statement about savings that best applies to them, the following responses were given:
- 42% selected ‘I save money on a regular basis’, which is significantly lower than the national average (49%)
- 26% selected ‘I sometimes save money’
- 15% selected ‘I can’t save, there’s never enough money’
- 13% selected ‘I save only when I want to save up for something big or special’
- 3% selected ‘I don’t save because I don’t need to’.
� When asked about how they control their expenses, 37% of respondents said that without keeping a written record they keep a fairly close eye on expenses, 31% said they use written or electronic records to keep a close eye on expenses, 19% keep an eye on their expenses a bit, and 12% don’t keep an eye on their expenses at all. The latter is significantly higher than the national average (5%).
� Respondents were asked about the difficulties they have with managing money. Fourteen percent of respondents said they have difficulties managing money. The main reasons for this are:
- they don’t have or earn enough money (50%)
- they can’t control their own behaviour/budget (40%)
- increasing prices/inflation (16%)
- family commitments/expenses (16%)
- usually monthly bills (16%)
- unexpected bills/expenses (14%), which is significantly lower than the national average (27%).
Attitudes
� The following seventeen attitudinal statements were read out to respondents and respondents had to indicate whether they agreed or disagreed with each statement:
- 90% agree that it is important to shop around to get the best deal for financial products and services
- 85% agree it is important to have a current will
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- 82% believe they are personally responsible for their financial future, which is significantly lower than the national average (88%)
- 75% feel confident about managing their financial affairs
- 69% know what insurance they need to cover their needs
- 59% agree that investing is a way to achieve financial goals, which is significantly lower than the national average (72%)
- 52% agree that if they were investing, they would take into account ethical, environmental, and social factors when deciding where to invest
- 51% would be able to manage for three months if they had a major loss of income, which is significantly lower than the national average (57%)
- 33% think they manage OK but that some of the financial decisions made by other members of their family are not so good, which is significantly higher than the national average (26%)
- 28% think people with KiwiSaver will have an adequate retirement income, which is significantly higher than the national average (21%)
- 25% have worked out how much they need for their retirement
- 24% spend all of their income as they get it, which is significantly higher than the national average (16%)
- 22% said that they don’t really plan for their future
- 20% find it hard to make ends meet because there is not enough money
- 13% agree that because of NZ Superannuation they don’t need to save for retirement, which is significantly higher than the national average (7%)
- 7% find that they have to borrow short term to make ends meet
- 4% feel out of control with their borrowing and debt generally, which is significantly lower than the national average (9%).
� Respondents were asked three questions about their perceptions of control over their life:
- 79% strongly agree that their life is determined by their own actions, 18% somewhat agree, 1% neither agree nor disagree, and 1% somewhat disagree.
- 8% strongly agree that their life is determined by things beyond their control, 31% somewhat agree, 20% neither agree nor disagree, 23% somewhat disagree, and 17% strongly disagree.
- 5% strongly agree that their life is determined by the actions of other people, 25% somewhat agree, 17% neither agree nor disagree, 27% somewhat disagree, and 27% strongly disagree.
Current financial situation
� Thirty-eight percent have taken some sort of action in the past 12 months that indicates financial strain.
� Twenty-four percent were unable to keep up with some type of payment in the past 12 months (for hire purchases, credit cards, utilities, mortgage, or rent).
� Compared to 12 months ago, 33% are now in a better financial situation, 45% are in about the same financial situation, and 21% are in a worse financial situation.
� Respondents were given a list of factors that might contribute to a worsened financial situation and were asked to select the ones that have happened to them in the past 12 months. The most common factors mentioned include:
- a drop in income/reduced hours of work (25%)
- a reduction in the value of assets (18%)
- illness (13%)
- three months or more of unemployment (10%).
� Compared to 12 months ago, 47% said that they are now more aware of their financial situation compared to 12 months ago, 1% said they are less aware, and 51% said they are about the same.
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� Compared to 12 months ago, 33% said that they are now more concerned about their financial situation, 10% said they are less concerned, 55% said they are about the same, and 1% didn’t know.
Financial advice
� Seventy-nine percent of respondents have obtained some type of financial information or advice in the past 12 months with banks being the most common source (52%), followed by friends and family (38%).
� When respondents were asked what factors or situations would lead them to seek financial information or advice, the following were mentioned most frequently:
- if they struggled to pay bills/had financial difficulties (34%)
- if they had more money/earned more money (19%)
- if they were trying to avoid/get out of debt (10%)
- if they had a loss/decrease in income/experienced unemployment (10%).
� When respondents were asked how they would prefer to receive financial information or advice on managing their personal finances, the following channels were mentioned most frequently:
- their bank (50%)
- family/relatives/friends (39%)
- financial advisor (37%)
- websites (25%).
� Forty-three percent of respondents have at some point in time read a Sorted booklet or visited the Sorted website, which is significantly higher than the national average (34%).
� Twenty-seven percent have read a Sorted booklet or visited the Sorted website in the past 12 months.
Financial product ownership
� At least three quarters of respondents have the following financial products:
- cheque/transaction/current account (90%)
- savings account (82%)
- vehicle insurance (80%), which is significantly lower than the national average (73%)
- house and contents insurance (79%), which is significantly lower than the national average (69%).
Money management
� At least three quarters of respondents use the following payment methods:
- EFTPOS (88%), which is significantly higher than the national average (83%)
- cash (85%), which is significantly higher than the national average (77%).
� To test maths and standard literacy in relation to bank statements, respondents were provided with a sample bank statement and were asked to calculate the amount of time it would take for the bank statement owner to save a specified amount of money, 65% of respondents1 were able to correctly calculate the time required. This is significantly lower than the national average (74%).
� When given a sample income and expenditure scenario and when asked to calculate how long it would take that person to save a specified amount of money, 82% were able to calculate the correct answer.
1 Based on a subgroup of the population.
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� Ninety-one percent of respondents knew the correct definition for the term ‘savings’.
� Eighty-two percent of respondents knew the correct definition for the term ‘term deposit’.
� Seventy-six percent of respondents knew the correct definition for the term ‘asset’.
� Sixty-eight percent of respondents knew the correct definition for the term ‘capital gain’.
� Sixty-four percent of respondents knew the correct definition for the term ‘liability’.
� Fifty-six percent of respondents knew the correct definition for the term ‘real rate of return’, which is significantly lower than the national average (66%).
� Fifty-eight percent of respondents knew the correct definition for the term ‘net worth’.
� Eighty-eight percent of respondents knew that ‘gross salary’ refers to before tax.
� Seventy-six percent of respondents knew what the term ‘secured loan’ means, which is significantly higher than the national average (70%).
� Ninety-two percent of respondents understood that if someone is not able to make the payments on a secured loan, the organisation that lent them the money is allowed to sell the asset that was used as security.
� Sixty-one percent of respondents had correct understanding of the term ‘equity’.
� Sixty-six percent of respondents correctly identified that paying off the full amount of a credit card each month would mean interest free days on purchases.
� Eighty-three of respondents correctly identified that money will still be owing on a credit card if only the minimum amount owing was paid.
� To test standard literacy in relation to bank statements, respondents were provided with a sample bank statement and were asked to identify how much the bank statement owner had at the end of each month. Ninety percent of respondents answered this question correctly. Respondents were also asked how much the bank statement owner had saved that month and 81% of respondents answered this question correctly.
� To test maths literacy in relation to the same bank statement, respondents were asked to calculate how much the bank statement owner had saved. Seventy-four percent of respondents2 were able to calculate the amount correctly, which is significantly lower than the national average (80%).
� Respondents were tested on their knowledge of the fees that apply to basic banking services by having to choose one of three scenarios where the least amount of fees would be charged. Sixty-nine percent of respondents correctly identified the scenario with the lowest fees, which is significantly higher than the national average (60%).
� Respondents were asked to identify the financial advantages of using Internet banking instead of over the counter banking at a local branch. Fifty-two percent of respondents correctly identified cheaper costs/lower or no fees as the main financial advantage.
� Respondents were asked if there were advantages to paying bills on or just before the day it’s due. Three quarters (77%) of respondents said there was an advantage and of those who were aware of the advantage, 54% said this was because they would qualify for a discount, which is significantly higher than the national average (47%). Forty-nine percent said this was because they would avoid overdue fees, which is significantly lower than the national average (57%), and 14% said this was because they could maximise the interest earned.
Budgeting
� Seventy-nine percent of respondents were able to correctly identify that the best description of a budget is ‘a plan for what you earn and what you spend’.
� When asked for reasons why it is important to have a budget, the following responses were given:
- 92% mentioned reasons relating to control
- 56% mentioned reasons relating to planning
2 Based on a subgroup of the population.
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- 48% mentioned reasons relating to tracking.
� Respondents were asked to identify, from a list provided, which best describes who could benefit from a budget. Eighty percent correctly said that ‘everyone’ can benefit from a budget, which is significantly higher than the national average (74%), while 14% said people who have difficulties managing money, 5% said people without much money, and 1% said people with a lot of money.
� Sixty percent of respondents have a budget.
Goal setting, long term goals, financial planning
� Seventy-nine percent of respondents have financial goals of which 31% have them written down and 69% don’t have them written down.
� Twenty-four percent have a financial plan that is written down, while 76% do not have a written financial plan.
� To test respondents’ understanding of financial plans, a series of true and false statements were read out and respondents were asked to select the answer that they thought was correct:
- 85% of respondents correctly chose false for the statement that ‘financial plans are set up once and you use that plan throughout your life’, while 10% incorrectly chose true, and 4% didn’t know.
- 96% of respondents correctly chose true for the statement that ‘financial plans should take into account possible changes in your life’, while 2% incorrectly chose false, and 2% didn’t know.
- 85% of respondents correctly chose false for the statement that ‘financial planning is about investments only’. Compared to the national average (93%), this is significantly lower, while the proportion who agreed with this statement is significantly higher (8% of Ngāi Tahu c.f. 4% of New Zealanders). A further 6% didn’t know.
Debt management
� To test understanding of the responsibility of a guarantor, respondents were asked to choose from a list of scenarios which one would best describe the responsibility of a guarantor; 82% had correct understanding.
� To test understanding of the fastest way to pay off debt, respondents were asked to choose from a list of scenarios, which scenario would best describe how to pay off a credit card and personal loan faster. Fifty-seven percent correctly identified the best scenario, which is significantly higher than the national average (49%).
� To test understanding of the importance of paying off debt faster, respondents were given a scenario and were asked to choose whether paying more off a home loan or investing in term deposits would likely result in getting out of debt faster. Seventy percent of respondents correctly identified the best solution.
Home loans/mortgages
� To measure respondents’ understanding of how to minimise interest on a mortgage, a series of true and false statements were read out and respondents were asked to select the answer that they thought was correct:
- 51% of respondents correctly chose true for the statement that to minimise the interest ‘pay half your monthly payment every fortnight’, while 32% incorrectly chose false, and 15% didn’t know.
- 91% of respondents correctly chose true for the statement that to minimise the interest one should ‘increase amount of regular payments’, which is significantly higher than the national average (87%). 3% incorrectly chose false and 5% didn’t know.
- 83% of respondents correctly chose false for the statement that to minimise the interest ‘put some payments on credit card and pay it off every six months’, while 4% incorrectly chose true, and 11% didn’t know.
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� To test respondents’ understanding of equity and leverage, respondents were given a scenario and were asked to choose from a list of options which would be the best way to finance a secondary property without a deposit. Seventy-seven percent of respondents gave the correct answer.
� To test respondents’ understanding of the circumstances in which a fixed interest rate is preferable, respondents had to select one of four scenarios which would best suit a two year fixed interest rate home loan rather than a variable or floating home loan. Seventy percent of respondents correctly said that it is better to have a two year fixed interest rate home loan when interest rates are expected to increase over the next two years, which is significantly higher than the national average (63%).
� To measure respondents’ understanding of fixed, floating, and variable interest rates, a series of true and false statements were read out and respondents were asked to select the answer that they thought was correct:
- 80% correctly chose true for the statement that with a fixed rate home loan, the interest rate remains the same for the term of the loan, while 14% incorrectly chose false, and 5% didn’t know.
- 54% correctly chose true for the statement that with a variable or floating rate home loan you can repay it in part of in full without penalty, which is significantly higher than the national average (46%), while 21% incorrectly chose false, and 24% didn’t know.
- 28% correctly chose false for the statement that with a revolving credit facility loan, you are charged a penalty for early repayment, which is significantly lower than the national average (34%). 26% incorrectly chose true and 44% didn’t know.
Managing risk
� To test respondents’ understanding of insurances, respondents were provided with different scenarios and were asked to identify the scenario that would require the greatest amount of life insurance. Eighty-seven percent of respondents selected the correct scenario, which is significantly lower than the national average (93%).
� To test respondents’ understanding of entitlement when two people separate, respondents were given a scenario and asked whether or not the person in the scenario would be entitled to a share of the house. Eight-four percent of respondents answered this question correctly, which is significantly higher than the national average (78%).
Savings
� To test respondents’ understanding of compound interest, respondents were provided with different scenarios and were asked to choose the scenario that would pay the most interest in total. Twenty-eight percent of respondents answered this question correctly, which is significantly lower than the national average (37%). Of those who answered the question correctly, 93% were able to explain why.
� Eighty-seven percent of respondents had correct understanding of inflation.
� Eighty-five percent of respondents had correct understanding of interest accrual.
� Seventy-six percent of respondents had correct understanding of the effects of inflation on savings, which is significantly less than the national average (81%).
Retirement planning
� Forty-nine percent of respondents have thought about financial planning for retirement either a lot (29%) or a little bit (20%), which is significantly lower than the national average (56%), while 34% have thought about it a little, and 16% haven’t thought about it at all.
� When asked what things a person should consider when they think about saving for retirement, the following answers were given:
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- 83% mentioned things relating to retirement spending/lifestyle, which is significantly higher than the national average (75%)
- 55% mentioned things relating to their current financial situation
- 47% mentioned things relating to their retirement income
- 33% mentioned things related to their length of retirement, which is significantly higher than the national average (24%).
� Eighty-five percent of respondents knew that people are entitled to New Zealand Superannuation once they turn 65 years of age.
� Respondents were asked to select, from a list of possible amounts, the figure closest to an after-tax New Zealand Superannuation amount for a single person living alone. Thirty-five percent of respondents were able to correctly identify the closest amount.
� Fifty-four percent of respondents were aware that New Zealand Superannuation is not income tested, which is significantly higher than the national average (44%). Thirty percent thought that it was income tested and 16% didn’t know.
� Fifty-six percent of respondents were aware that New Zealand Superannuation is not asset tested, which is significantly higher than the national average (50%). Twenty-three percent thought that it was asset tested and 21% didn’t know.
Investing
� Ninety percent had correct understanding that an investment with a higher than average return is likely to have a higher than average risk.
� Eighty-eight percent had correct understanding that even with good share investments, in the short term the value can usually be expected to go up and down.
� Fifty-one percent of respondents said that if someone was considering investing in an investment that was advertised as having a return well above market rates, it’s probably too good to be true, while 42% said they would recommend investing lightly, and 3% said they would recommend investing heavily.
� When asked which type of savings or investment would generally be considered to make the most money over the next 15 to 20 years, the following responses were given:
- 38% of respondents said fixed interest investment, which is significantly lower than the national average (49%)
- 30% said a range of shares
- 29% said a savings account, which is significantly higher than the national average (22%)
- 1% said a cheque account, which is significantly higher than the national average (0%).
� When asked what should be taken into account when looking at investment offers, the following responses were given:
- 73% mentioned factors related to risk
- 64% mentioned factors related to return
- 27% mentioned factors related to duration
- 26% mentioned factors related to liquidity
- 22% mentioned factors related to cost.
� To test respondents’ understanding of how to reduce risk, a series of true and false statements were read out and respondents were asked to select the answer that they thought was correct for someone who wanted to reduce the risk with an investment:
- 46% of respondent correctly chose true for the statement ‘take out capital guaranteed investments’, while 6% incorrectly chose false, and 45% didn’t know.
- 66% of respondents correctly chose true for the statement ‘diversify investment portfolio and have a variety of investments’, which is significantly lower than the national average (74%). 8% of respondents incorrectly chose false, and 22% didn’t know.
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- 59% of respondents correctly chose false for the statement ‘invest only in property’, which is significantly lower than the national average (70%). 25% of respondents incorrectly chose true, and 14% didn’t know.
- 82% of respondents correctly chose true for the statement ‘change from high risk to low risk investments’, while 6% incorrectly chose false, and 10% didn’t know.
� Ninety-two percent of respondents correctly said that an investment that promised a very high return with little risk was probably a scam, which is significantly higher than the national average (88%).
� Ninety-two percent of respondents correctly said that an investment being offered to only a selected few people was probably a scam.
� Eighty percent of respondents correctly said that an offer by a well known, reputable financial organisation was probably not a scam.
� Sixty-two percent of respondents correctly said that an offer where the minimum amount to invest keeps reducing is probably a scam, which is significantly lower than the national average (74%).
� Ninety-four percent of respondents correctly agreed that before investing, it is important to read and understand the investment statement that explains details about the investment, which is significantly lower than the national average (97%).
� Ninety-four percent of respondents correctly agreed that before handing money to a financial adviser, a person should ask about their qualifications and experience.
� Seventy-six percent of respondents correctly agreed that it is important to find out how a financial adviser is being paid.
� Seventy-five percent of respondents correctly agreed that a financial advisor has to give you a disclosure statement.
Consumer rights and responsibilities
� While 95% of respondents knew that it’s not alright to reveal your internet banking password to a friend, only 79% knew that it’s not alright to reveal your internet banking password to a bank staff member, which is significantly lower than the national average (86%). Further, only 42% knew that it’s not alright to reveal your internet banking password to a partner.
KiwiSaver
� Thirty-six percent of respondents are KiwiSaver members, which is significantly higher than the national average (29%). However, this difference may be attributed to the continued growth in the uptake of KiwiSaver in general.
� Just over half of Ngāi Tahu KiwiSaver members joined in 2007 with slightly smaller proportions joining each subsequent year.
� Eighty-one percent of Ngāi Tahu KiwiSaver members are currently contributing to their fund.
- 32% are contributing 2%, which is significantly higher than the national average (15%)
- 47% are contributing 4%, which is significantly lower than the national average (64%)
- 4% are contributing 8%
- 4% are not wage earners.
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Conclusions
At an overall level, the Ngāi Tahu survey results are fairly similar to the national New Zealand results.
In particular, the sizes of the knowledge tritiles are similar between the two surveys, and the levels of
correct knowledge pertaining to many of the specific areas of knowledge that were tested are also
similar between the two surveys. This suggests that Ngāi Tahu will benefit from initiatives that are
targeted at the general population, and rolled out nationally, in the same way that the general New
Zealand population will benefit from such initiatives. However, if these national initiatives are
provided through unique channels that are tailored specifically for Ngāi Tahu iwi members, it is likely
that they will benefit from these initiatives to an even greater degree.
There also appear to be opportunities to deliver programmes to Ngāi Tahu iwi members that
specifically cater for those with particularly low financial knowledge. The Lowest knowledge group
has the least access to financial products and therefore are more at risk. However, they are also the
group that can benefit from specific attention the most. They describe themselves as having less
control over their own lives. This, coupled with the fact that around a third of Ngāi Tahu iwi
members say they are influenced adversely by their family’s financial decision making, has significant
implications for the delivery of financial knowledge initiatives to this group as they are less likely to
help themselves and more likely to depend on others for help and direction.
As noted above, while the results relating to specific areas of knowledge are generally in line with
national averages, there are some key differences which should inform decisions Te Rūnanga o Ngāi
Tahu makes on where to focus its efforts.
Of particular note, there is a common perception among Ngāi Tahu iwi members that with KiwiSaver
and New Zealand Superannuation, there is less need to think about, and plan for, retirement. This
perception is likely to have influenced the fact that compared to the national average, relatively fewer
Ngāi Tahu iwi members have thought about retirement. This finding is despite the older age profile
of the Ngāi Tahu respondents.
In addition, Ngāi Tahu iwi members are less likely to see the benefits of investments in achieving
financial goals. This, coupled with a relatively more common perception that a savings account will
make the most money over the next 15 to 20 years, and the fact that Ngāi Tahu members are
significantly less likely than the national average to be saving on a regular basis, indicates that Ngāi
Tahu iwi members may have a more conservative view of money management and investing.
While Ngāi Tahu tend to have more positive perceptions than the national average towards investing
in property, this may reflect a difference in values regarding what they should be investing in for their
future and for future generations.
Around half of Ngāi Tahu iwi members are now more aware of their financial situation compared to
12 months ago. Conversely, a third are now more concerned about their financial situation compared
to 12 months ago and over a third of Ngāi Tahu have experienced financial strain over the past 12
months with one in four unable to keep up with some type of payment. However, it is interesting to
note that the factors that have contributed to worsened financial situations are the same factors that
will lead them to seek financial information. And, it is evident that they are actively seeking help in
their financial matters with four in five respondents having sought financial advice in the past 12
months and just under half having read a Sorted booklet or visited a Sorted website at some point in
time.
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Background and objectives
In 2009 the Retirement Commission (with the support of ANZ) commissioned Colmar Brunton to carry
out a survey among New Zealanders to find out how much New Zealanders know about managing
their personal finances. This is referred to as the national survey in this report.
In 2010, Colmar Brunton was commissioned to conduct the same survey for, and in partnership with
Te Rūnanga o Ngāi Tahu (and with the support of the Retirement Commission) among 400 Ngāi Tahu
iwi members. This report presents the detailed findings of the Ngāi Tahu survey with comparisons
made with the national results.
The purpose of the Ngāi Tahu survey is to:
� establish a benchmark of financial knowledge among Ngāi Tahu members against which future comparisons can be made to evaluate initiatives introduced to improve the financial literacy of Ngāi Tahu members.
� enable the financial knowledge of Ngāi Tahu members to be benchmarked against that of all adult New Zealanders.
To increase the opportunity for involvement of Ngāi Tahu iwi members in the implementation of the
project and to help manage costs, Colmar Brunton and Te Rūnanga o Ngāi Tahu (Te Rūnanga)
worked together in partnership to conduct this survey.
What is financial knowledge and why is it important?
Financial knowledge for the purposes of both the Ngāi Tahu survey and the national survey was
defined as:
“the ability to make informed judgements and to take effective decisions
regarding the use and management of money.”3
The more financial understanding people have, the more effectively they can manage their day-to-
day finances and long term financial planning. Levels of financial knowledge and the ability to use
that knowledge to make good financial decisions can have a strong impact on the financial and
ultimately the health and social wellbeing of whānau, hapū, and iwi and their ability to make
meaningful choices and decisions about their lives.
How financial knowledge was measured
The Ngāi Tahu survey has used the same financial literacy framework, measurement approach, and
scoring approach that were adopted for the national survey.
In reading this report, the reader should bear in mind that the national survey (and thus the Ngāi
Tahu survey) was primarily designed to test and measure the population’s financial knowledge. The
scoring for grouping responses is mainly done on the basis of pure knowledge questions. For
example, true/false questions were heavily used. However, the survey also asked questions about
people’s understanding of financial issues and their attitudes and behaviours, for which scenarios and
show cards were used.
3 This is the definition used in New Zealand's National Strategy for Financial Literacy. It is consistent with that used in the 2009
New Zealand survey and previous surveys commissioned by ANZ Bank in Australia. The definition was originally adopted for these surveys from UK research.
Colmar Brunton Page | 12
What was measured?
As with the national New Zealand survey, the Ngāi Tahu study sought to measure knowledge and
understanding, behaviour and attitudes as they relate to the following specific areas of interest:
� Mathematical and standard literacy – essential mathematical, reading, and comprehension skills
� Financial understanding – understanding of what money is and how it is exchanged; understanding of where money comes and goes from
� Financial competence – understanding the main features of basic financial services; understanding financial records; understanding which type of payment is best to use and why; understanding mortgages; attitudes to spending money and saving; awareness of the risks associated with some financial products, and appreciation of the relationship between risk and return
� Financial responsibility – ability to make appropriate personal life choices about financial issues; understanding consumer rights and responsibilities.
The survey tested the following areas of personal financial knowledge: money management,
budgeting, goal setting, financial planning, debt management, home loans and mortgages, managing
risk, savings, planning for retirement, and investing.
Financial knowledge framework and scoring
Careful consideration was used when designing the framework used for the national financial
knowledge survey. The same framework was applied to the Ngāi Tahu financial knowledge survey.
The financial knowledge framework set out the knowledge and skills required for a person to be
financially literate at a basic and at an advanced level. This helped determine the topics which would
be covered by the survey.
Survey questions were designed to capture the most important skills and knowledge under all of the
categories in the framework and an effort was made to ensure the questions covered as much of the
framework as possible. It was recognised that some questions could cover more than one concept.
However, it was agreed that each question would only be counted once.
Each question was assigned a ‘score’. When added together, an individual’s total score would
indicate whether they had basic, sound or advanced personal financial knowledge.
The questions were divided into those which would feed into the score of financial knowledge and
those which would act as filters to knowledge questions (e.g. ‘Do you know what ‘equity’ means?’) or
descriptors (e.g. demographic or behavioural information helping to describe the respondent). The
scored questions were predominantly given one point for each correct answer. Where multiple
responses were possible, these were given part scores so that the overall score was in line with other
questions of equal value. Each question was identified as measuring either basic or advanced
knowledge, with the majority falling under basic and those tagged advanced being predominantly
investment related questions – for those who have money to invest.
It was agreed that, as financial knowledge reflects each person’s circumstances and experiences,
people should not be disadvantaged because they were not familiar with products and services they
might never use or need (for example, those without the means to invest would not be expected to
know about investing). Therefore, only the questions testing basic knowledge were used to
determine the overall financial knowledge scores. Planning for the future, saving, understanding
mortgages, and budgeting were deemed the most important areas of financial knowledge. The
advanced questions, relating primarily to investment, were scored separately.
Colmar Brunton Page | 13
The basic knowledge questions had a maximum score of 58.5 and the advanced knowledge questions
had a maximum score of 18.5.
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Research methodology
A partnership approach between Colmar Brunton and Te Rūnanga o Ngāi Tahu (Te Rūnanga) was
used in conducting this survey. Colmar Brunton undertook the design of the survey, trained and
supervised the interviewers from Te Rūnanga, processed the data and undertook the analysis and
reporting. The trained members of Ngāi Tahu carried out the interviews.
A total of 400 Ngāi Tahu iwi members aged 18 years or over participated in the research between the
5th of April and the 18th of June 2010. All interviews were conducted face-to-face in nine main
regions.
Questionnaire development
To allow for direct comparisons with the national survey, all financial knowledge questions remained
the same. Changes that were made to existing questions were only made to the demographic
section where necessary (for example, rather than asking about ethnicity we asked about iwi
affiliation).
Two additional questions were asked in this survey to gain understanding of what factors or
situations would lead people to seek financial information and the method in which they prefer to
receive financial information.
Sampling
Interviews were carried out in nine regions (Auckland, Waikato, Hawke’s Bay, Manawatu-Whanganui,
Wellington, West Coast, Canterbury, Otago, and Southland), approximately in proportion to the size
of each region (defined by the total number of Ngāi Tahu members in the region).
Sampling was undertaken using a list of Ngāi Tahu iwi members aged 18 years or over that was
provided by Te Rūnanga and potential respondents were randomly selected from this list based on
the region they live in.
Each potential respondent was sent a letter which outlined the purpose and the benefit of the study
and explained what would be involved if they took part. They were then phoned by a member of Te
Rūnanga to determine willingness to participate in the study. Once willingness was established,
interviewers made arrangements with each respondent to organise a suitable time and venue for the
face-to-face interview.
Participants were given a koha as a ‘thank you’ for their help in this study.
Fieldwork
All fieldwork for this study was managed and conducted by Te Rūnanga with the guidance of Colmar
Brunton. Interviewers were recruited by Te Rūnanga and trained by a Colmar Brunton supervisor
specifically for this project. To provide support and feedback on interviewing techniques, Colmar
Brunton supervisors viewed some of the initial interviews conducted.
Weighting
To ensure the data reflects the characteristics of the population of interest, the data have been
weighted by Whai Rawa membership (Te Rūnanga’s saving initiative).
Colmar Brunton Page | 15
Estimated sampling errors
The following table provides estimated margins of error associated with various survey results at a
total sample size level. The calculations assume simple random sampling and have been calculated
at the 95% confidence level. Sub-group analyses carry higher margins of error.
Table A: Estimated sampling errors
Survey result (%) Margin of error associated with survey (n=400)
Margin of error when comparing results between Ngāi Tahu and New Zealand survey (n=400 and
n=850 respectively)
10% or 90% +/-2.9% +/-3.6%
20% or 80% +/-3.9% +/-4.8%
30% or 70% +/-4.5% +/-5.4%
40% or 60% +/-4.8% +/-5.8%
50% or 50% +/-4.9% +/-5.9%
All differences commented on within the written commentary of this report are statistically significant
at the 95% confidence level (unless otherwise stated). Further, all statistically significant differences
with the national results are denoted with an arrow in the graphs.
Colmar Brunton Page | 16
Detailed findings
Financial knowledge groups
Both the national survey of New Zealanders, and the Ngāi Tahu survey, used a constructed financial
knowledge score (FKS), which involved grouping respondents by their level of knowledge into three
categories (tritiles) as follows:
� Low knowledge – FKS of less than 37.25
� Medium knowledge – FKS of 37.25 to 44
� High knowledge – FKS of 44 to 58.5.
Because the same definition was used in both surveys we can compare Ngāi Tahu’s financial
knowledge with that of New Zealand (the national average). For example, the analysis that follows
assesses whether the size of the Low knowledge groups in the two surveys differs by comparing the
proportion of Ngāi Tahu’s population who had a financial knowledge score of less than 37.25 in 2010
with the proportion of New Zealand’s population who had a financial knowledge score of less than
37.25 in 2009.
In addition to these three groups, we also looked at those at both ends of the knowledge scale; those
who scored 28.25 or less on the basic knowledge questions (Lowest knowledge group) and those
who scored 15 or more out of a possible 18.5 on the advanced knowledge questions (Advanced
knowledge group). The advanced knowledge points were assigned to questions where it was
expected that a higher level of financial knowledge would be needed. Those questions that were
defined as advanced were predominantly investment related questions – for those who have money
to invest. Again, to allow for direct comparisons to be made, the 2009 national survey definitions
were used to construct the Lowest knowledge group and the Advanced knowledge group using the
Ngāi Tahu survey data.
Colmar Brunton Page | 17
Low, Medium and High knowledge groups
The sizes of the three knowledge groups (Low, Medium and High) are illustrated in the following
chart for both the Ngāi Tahu survey and the national survey.
Size of financial knowledge groups
29% 31%
31% 26%
40% 43%
0%
20%
40%
60%
80%
100%
Ngai Tahu New Zealand
Low Knowledge Medium Knowledge High Knowledge
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)
While the results between Ngāi Tahu and the national survey are quite similar, the proportion of Ngāi
Tahu that fall into the Medium knowledge group is slightly larger (31% of Ngāi Tahu are in the
Medium knowledge group compared to 26% of New Zealanders) and this is drawn relatively evenly
from both the High and Low knowledge groups. This difference is significant at the 90% confidence
level.
Demographic profile of knowledge groups
Tables B and C profile the demographic groups by the three knowledge groups. The data contains
row percentages. An example of how the data should be interpreted is as follows. Thirty-eight
percent of males and 41% of females are in the High knowledge group.
• The figures in green denote where the results from the Ngāi Tahu survey are significantly
higher than the national average.
The figures in red denote where the results from the Ngāi Tahu survey are significantly lower than
the national average.
Key patterns in the data are as follows:
� Slightly more females than males are in the High knowledge group (compared to the national survey where more males fell into the High knowledge group).
� Those aged 35-64 years tend to have the highest knowledge, which is consistent with the national survey. However, males aged 35-44 years and females aged 45-54 years are significantly less likely than the national average to be in the High knowledge group.
Colmar Brunton Page | 18
� Those with higher education tend to have higher levels of financial knowledge.
� Home owners have higher financial knowledge than renters. However, when compared to the national results, there are significantly less home owners in the High knowledge group and more in the Medium knowledge group.
� 45% of those in paid employment are in the High knowledge group compared to only 28% of those who are not in paid employment.
� Financial knowledge tends to increase with income (both household income and personal income).
� While levels of financial knowledge tend to increase with net worth, those with a net worth ranging from negative to $100,000 are less likely than the national average to be in the Low knowledge group and more likely to be in the Medium knowledge group.
� Those who live in Auckland, Wellington, and Otago tend to have higher levels of financial knowledge.
� 45% of Whai Rawa members are in the High knowledge group compared to only 36% of non-members.
Colmar Brunton Page | 19
Table B: Profile of demographic groups by knowledge
Sample Size Low knowledge Medium
knowledge
High knowledge Demographic categories
Ngāi Tahu n=
New Zealand n=
Ngāi Tahu %
New Zealand
%
Ngāi Tahu %
New Zealand
%
Ngāi Tahu %
New Zealand
%
Total respondents 400 850 29 31 31 26 40 43
Gender Males 196 366 31 28 31 27 38 46
Females 204 484 27 34 32 26 41 40
Age 18-24 23* 83 51 57 28 25 21 18
25-34 49 116 31 37 37 30 32 33 35-44 99 166 20 20 35 23 46 57 45-54 98 160 25 15 33 25 43 60 55-64 71 145 19 21 36 27 45 53 65+ 55 180 49 44 20 28 31 29
Age by gender Males 18-34 32 81 47 46 30 29 23 26 Males 35-44 44 72 19 17 42 20 39 64
Males 45-54 47 66 23 10 29 28 48 61 Males 55-64 39 66 21 16 35 25 44 59 Males 65+ 32 81 47 37 21 30 31 33 Females 18-34 40 118 31 45 37 27 32 28 Females 35-44 55 94 20 23 28 26 52 52
Females 45-54 51 94 26 20 36 22 38 58 Females 55-64 32 79 16 25 38 29 46 47 Females 65+ 23* 99 51 49 18 25 30 25
Education Primary or basic secondary education 110 205 46 53 32 28 22 18
Secondary school qualification (only) 93 197 31 34 33 30 36 37
Tertiary or post-graduate education 193 441 17 20 31 24 52 56
Home ownership
Owned by self/partner 209 437 19 22 33 22 48 57
In a trust 27* 76 21 16 24 36 55 48 Rented 146 286 42 44 33 28 25 28
Employment In paid employment 276 507 20 22 34 26 45 52 Not in paid employment 120 343 48 46 25 26 28 28
Household income
$50,000 or less 140 389 50 47 27 26 24 28
$50,001 to $100,000 142 205 15 14 38 30 47 56
More than $100,000 90 146 7 9 30 20 63 71
Personal income
$10,000 or less 40 79 34 58 28 20 38 22
$10,001 to $20,000 66 174 59 44 27 22 15 34
$20,001 to $30,000 50 130 37 33 19 28 44 39
$30,001 to $40,000 32 75 22 31 38 33 40 37
$40,001 to $50,000 60 80 23 7 46 43 31 51
$50,001 to $70,000 54 87 8 9 42 26 49 65
$70,001 to $100,000 50 67 4 13 27 19 69 69
More than $100,000 23* 37 3 9 19 13 78 78
Net worth Negative net worth to $100,000 49 355 24 43 41 26 34 32 $101,000 to $300,000 net worth 259 166 36 32 30 26 34 42 $301,000 to $600,000 net worth 58 195 16 22 33 26 51 52 $601,000 plus net worth 34 134 4 8 25 28 71 65
Note: Any groups where the base is less than n=20 are not included in this table.
*Caution: Small base size
Colmar Brunton Page | 20
Table C: Profile of regions by knowledge
Sample Size Low knowledge
Medium knowledge
High knowledge
Demographic categories
Ngāi Tahu n=
Ngāi Tahu %
Ngāi Tahu %
Ngāi Tahu %
Total respondents 400 29 31 40
Region Auckland 45 15 38 47
Waikato 31 49 13 38
Hawkes Bay 20* 43 32 25
Manawatu-Whanganui 20* 29 34 38 Wellington 45 29 21 50 West Coast 10* 46 22 33 Canterbury 150 31 32 37 Otago 39 15 33 52 Southland 40 29 44 27
Whai Rawa membership Member 205 21 34 45 Non-member 195 34 30 36
*Caution: Small base size
Profile of knowledge groups by product ownership
Table D profiles the three knowledge groups by product ownership. The data contains column
percentages. An example of how the data should be interpreted is as follows. Ninety-three percent
of the High knowledge group have a cheque/transaction/current account.
Key patterns evident in the data are as follows:
� Across most of the financial products, ownership is highest among the High knowledge group and lowest among the Low knowledge group, except for having a personal loan and government student loan.
� As with the national results, take up of KiwiSaver correlates positively with higher financial knowledge.
� There are a number of significant differences in product ownership across the knowledge groups when comparing Ngāi Tahu to the national average. Ngāi Tahu are less likely to own the following products:
- high interest call account; this is driven by particularly low ownership levels among the Low knowledge group
- term deposit/call account
- credit card; this is driven by particularly low ownership levels among the High knowledge group.
Ngāi Tahu are more likely than the national average to own the following products:
- unit trust/managed fund; this is driven by particularly high ownership levels among the Medium and High knowledge groups
- work based superannuation fund; this is driven by particularly high ownership levels among the Low knowledge group
- personal overdraft; this is driven by particularly high ownership levels among each of the knowledge groups
- lease or hire purchase; this is driven by particularly high ownership levels among the High knowledge group
- house/contents insurance; this is driven by particularly high ownership levels among the Low and Medium knowledge groups
- vehicle insurance; this is driven by particularly high ownership levels among the Low and Medium knowledge groups.
Colmar Brunton Page | 21
Table D: Profile of knowledge groups by product ownership
Total sample Low knowledge Medium knowledge
High knowledge Demographic categories
Ngāi Tahu %
New Zealand
%
Ngāi Tahu %
New Zealand
%
Ngāi Tahu %
New Zealand
%
Ngāi Tahu %
New Zealand
%
Sample size n= 400 850 109 259 128 225 163 366
Cheque/transaction/current a/c 90 87 89 74 87 87 93 97 Savings account 82 85 66 79 87 85 89 89 High interest call account 11 17 2 8 10 10 20 27 Term deposit/term investment 22 28 12 18 21 28 30 34 Unit Trust/Managed fund 16 11 5 4 15 7 25 17 Other deposit accounts 17 17 9 10 22 17 18 22 Shares 18 22 7 8 18 22 25 31 KiwiSaver 34 29 24 17 36 31 41 36 Work based superannuation 20 14 13 4 20 13 26 22
Personal retirement savings / superannuation
21 18 12 9 23 20 25 23
Mortgage/loan on home live in/holiday home
32 27 12 10 33 24 45 41
Mortgage/loan on other properties owned
10 10 5 3 11 6 13 17
Personal loan 19 17 17 14 25 23 15 15 Personal overdraft 35 23 29 16 38 25 38 26 Revolving credit 8 8 5 1 5 6 14 14 Government student loan 18 15 18 13 20 18 18 14 Credit cards 60 66 31 37 64 70 76 84 Store cards 29 24 18 13 31 29 36 29 Lease or hire purchase 21 15 17 15 22 14 24 16 House/contents insurance 79 69 61 42 82 71 90 86 Vehicle insurance 80 73 59 47 87 79 89 89 Private health insurance 43 40 26 24 44 38 55 53
Colmar Brunton Page | 22
Lowest and Advanced knowledge group
The next chart shows the sizes of the Lowest and Advanced knowledge groups.
Size of Lowest and Advanced knowledge groups
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)
10%
19%
10%
20%
0% 5% 10% 15% 20% 25%
Lowest knowledge group
Advanced knowledge group
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
One in ten (10%) Ngāi Tahu fall into the Lowest knowledge group while one in five (19%) fall into
the Advanced knowledge group. This is consistent with the national results.
Demographic profile of Lowest and Advanced knowledge groups
Tables E and F profile the demographic groups by Lowest and Advanced knowledge groups. The
data contains row percentages. An example of how the data should be interpreted is as follows.
Twenty-two percent of males, and 16% of females, are in the Advanced knowledge group.
Key findings include:
� A knowledge gap exists between males (higher) and females (lower) in the Advanced knowledge group. However, this gap is less marked compared to the national results.
� Those aged 18-24 and 65 or over tend to have the lowest knowledge, which is consistent with the national results.
� Those aged 45-54 are significantly less likely than the national average to be in the Lowest knowledge group, and males aged 35-44 are significantly less likely than the national average to be in the Advanced knowledge group.
� Those with a net worth ranging from negative to $100,000 are significantly less likely than the national average to be in the Lowest knowledge group.
� High proportions of those who live in the Waikato, Manawatu-Whanganui, and the West Coast are in the Advanced knowledge group.
� 22% of Whai Rawa members are in the Advanced knowledge group compared to only 17% of non-members.
Colmar Brunton Page | 23
Table E: Profile of demographic groups by Lowest and Advanced knowledge groups
Sample Size Lowest knowledge Advanced knowledge Demographic categories
Ngāi Tahu n=
NZ n=
Ngāi Tahu %
NZ %
Ngāi Tahu %
NZ %
Total respondents 400 850 10 10 19 20
Gender Males 196 366 10 8 22 27
Females 204 484 9 12 16 14
Age 18-24 23* 83 31 29 8 11 25-34 49 116 11 10 10 14 35-44 99 166 7 4 18 27 45-54 98 160 1 7 26 30 55-64 71 145 5 5 20 24 65+ 55 180 20 12 17 12
Age by gender Males 18-34 32 81 17 14 11 16 Males 35-44 44 72 5 4 16 38
Males 45-54 47 66 3 1 35 34 Males 55-64 39 66 9 4 25 30 Males 65+ 32 81 18 14 18 22 Females 18-34 40 118 19 22 8 10 Females 35-44 55 94 8 5 19 16 Females 45-54 51 94 - 11 17 26
Females 55-64 32 79 - 6 14 18 Females 65+ 23* 99 23 11 15 4
Education Primary or basic secondary 110 205 15 18 6 7
Secondary school qualification (only) 93 197 13 17 16 17 Tertiary or post-graduate education 193 441 5 4 28 26
Home ownership
Owned by self/partner 209 437 3 5 29 26
In a trust 27* 76 10 7 16 26
Rented 146 286 15 16 8 13
Employment In paid employment 276 507 5 6 21 25 Not in paid employment 120 343 18 17 14 12
Household income Less than $50,000 140 389 18 16 10 10
$50,001 to $100,000 142 205 4 2 20 28
More than $100,000 90 146 2 - 36 37
Personal income
$10,000 or less 40 79 13 24 15 7
$10,001 to $20,000 66 174 17 13 7 12
$20,001 to $30,000 50 130 12 10 20 18
$30,001 to $40,000 32 75 10 7 14 17
$40,001 to $50,000 60 80 9 - 16 22
$50,001 to $70,000 54 87 1 2 22 37
$70,001 to $100,000 50 67 - - 31 35
More than $100,000 23* 37 - 2 61 48
Net worth Negative net worth to $100,000 49 355 2 17 11 13 $101,000 to $300,000 net worth 259 166 13 9 14 18 $301,000 to $600,000 net worth 58 195 7 6 32 23 $601,000 plus net worth 34 134 - 1 52 39
Note: Any groups where the base is less than n=20 are not included in this table.
*Caution: Small base size
Colmar Brunton Page | 24
Table F: Profile of regions by Lowest and Advanced knowledge groups
Sample size Lowest knowledge
Advanced knowledge
Demographic categories
Ngāi Tahu n=
Ngāi Tahu %
Ngāi Tahu %
Total respondents 400 10 19
Region Auckland 45 5 17
Waikato 31 13 28
Hawkes Bay 20* 6 9 Manawatu-Whanganui 20* 7 34 Wellington 45 13 19 West Coast 10* - 33 Canterbury 150 11 17 Otago 39 12 23 Southland 40 8 11
Whai Rawa membership
Member 205 6 22 Non-member 195 12 17
*Caution: Small base size
Profile of knowledge groups by product ownership
Table G profiles the Lowest and Advanced knowledge groups by product ownership. The data
contains column percentages. An example of how the data should be interpreted is as follows.
Ninety-seven percent of those with Advanced knowledge have a cheque/transaction/current account.
Key findings include:
� Across most of the financial products, ownership is particularly low among the Lowest knowledge group and particularly high among the Advanced knowledge group. The main exception to this is government student loans.
� There are a number of significant differences in product ownership across the Lowest and Advanced knowledge groups when comparing the Ngāi Tahu results with the national average. Compared to the national average, a significantly smaller proportion of the Advanced knowledge group have shares, while significantly larger proportions have insurances (for both house/contents and for vehicles). The incidence of owning a cheque/transaction/current account for those in the Lowest knowledge group is higher than the national average.
Colmar Brunton Page | 25
Table G: Profile of Lowest and Advanced knowledge groups by product ownership
Lowest knowledge Advanced knowledge Demographic categories
Ngāi Tahu %
New Zealand %
Ngāi Tahu %
New Zealand %
Sample size n= 35 84 78 167
Cheque/transaction/current a/c 95 75 97 97 Savings account 62 68 88 90 High interest call account - 5 26 29 Term deposit/term investment 15 10 34 34 Unit Trust/Managed fund 2 3 23 22 Other deposit accounts 7 11 23 21 Shares 7 8 25 40 KiwiSaver 7 15 45 40 Work based superannuation 12 3 33 28 Personal retirement savings /
superannuation 3 6 29 29
Mortgage/loan on home live in/holiday home
7 5 54 42
Mortgage/loan on other properties owned
5 - 18 15
Personal loan 7 6 12 15
Personal overdraft 19 14 40 29 Revolving credit - - 23 16 Government student loan 15 7 11 13 Credit cards 21 21 89 87 Store cards 22 9 30 28 Lease or hire purchase 16 14 17 17 House/contents insurance 41 27 95 88 Vehicle insurance 43 34 95 88 Private health insurance 14 14 63 56
Colmar Brunton Page | 26
Areas of highest knowledge and lowest knowledge
Table H below provides a summary of the results to the financial knowledge questions and are
ordered from questions where Ngāi Tahu respondents had the highest knowledge to questions where
respondents had the lowest knowledge. Results are shown for the total sample and also according
to Whai Rawa membership status.
Figures in green denote where the results from Whai Rawa members are significantly higher than the
results from non-members.
Table H: Areas of highest knowledge and lowest knowledge
Knowledge area % Correct
All
Ngāi Tahu (n=400)
Whai Rawa members
(n=205)
Non-Whai
Rawa members
(n=195)
Financial plans – understanding that they should take into account possible changes (Q16)
96% 98% 94%
Consumer rights and responsibilities – understanding that telling your friend your password is unwise (Q46)
95% 97% 94%
Financial advice – before investing, it is important to ask the financial advisor about their qualifications and experience Q47)
94% 98% 92%
Financial advice – before investing, it is important to read and understand the
Investment Statement that explains details about the investment (Q47) 94% 95% 94%
Investing – an investment where they promise a very high rate of return with little risk might be a scam (Q45)
92% 93% 91%
Investing – an investment where you are told the offer is only being made to a select few people might be a scam (Q45)
92% 91% 92%
Importance of having a budget in relation to the ability to control money (Q11) 92% 97% 90%
Financial term – ‘savings’ (Q7) 91% 94% 89%
Mortgages in relation to increasing the amount of regular payments (Q20) 91% 94% 89%
Investing – understanding that a higher than average return is likely to have
higher than average risk (Q40a) 90% 93% 89%
Financial records – how much had at end of month (Q2a) 90% 91% 89%
Investing – understanding that even with good share investments, in the short
term the value can usually be expected to go up and down (Q40b) 88% 92% 86%
Tax – gross salary is before a person is taxed (Q9) 88% 91% 87%
Managing risk – strategic use of insurance (Q25) 87% 90% 85%
Savings – future dollar value (Q29a, 29b) 87% 88% 87%
Savings – interest earned (Q32) 85% 85% 85%
Retirement – NZ superannuation entitlement age (Q36) 85% 85% 86%
Financial plans – understanding that they can change throughout life (Q16) 85% 91% 82%
Financial plans – understanding that investments are only part of it (Q16) 85% 89% 83%
Managing risk – entitlement to share of house when two people separate after four years (Q26)
84% 91% 80%
Retirement planning – consider retirement spending/lifestyle factors (Q35) 83% 83% 83%
Credit cards – money is still owed if only minimum amount paid (Q4) 83% 84% 83%
Mortgages in relation to minimising interest by putting some payments on a credit card and paying it off every six months (Q20)
83% 86% 81%
Financial term – ‘term deposit’ (Q7) 82% 86% 79%
Investing – change from high risk to low risk investments (Q44) 82% 84% 82%
Debt management in relation to the responsibility of the guarantor (Q18) 82% 84% 81%
Maths and standard literacy in relation to savings (Q27) 82% 87% 78%
Financial records – whether saving this month (Q2b) 81% 85% 78%
Mortgages, in particular that with a fixed interest rate home loan the interest rate remains the same for the term of the loan (Q24)
80% 81% 80%
Colmar Brunton Page | 27
Knowledge area (continued) % Correct
All
Ngāi Tahu (n=400)
Whai Rawa members
(n=205)
Non-Whai Rawa
members
(n=195)
Investing – an investment offered by a well known, reputable financial organisation is not likely to be a scam (Q45)
80% 80% 79%
Budget – everyone can benefit (Q12) 80% 80% 80%
Budget – planning for what you earn and what you spend (Q10) 79% 82% 77%
Consumer rights and responsibilities – understanding that telling a bank staff member your internet banking password is unwise (Q46)
79% 82% 77%
Mortgages in relation to equity and leveraging - borrowing against the value in an existing property (Q22)
77% 75% 77%
Financial term – ‘asset’ (Q7) 76% 83% 72%
Financial advice – before investing, it is important to find out how a financial advisor is being paid (Q47)
76% 80% 74%
Savings – real interest rate (Q33) 76% 78% 75%
Investing – should take into account risk of investment (Q43) 73% 80% 69%
Debt management in relation to reducing debt (Q30) 70% 68% 71%
Mortgages in relation to fixed, floating, variable home loans (Q23) 70% 70% 69%
Financial term – ‘secured loan’ (Q17b) 69% 79% 64%
Financial advantage of withdrawing cash when making EFTPOS purchases (Q3) 69% 77% 65%
Financial term – ‘capital gain’ (Q7) 68% 72% 66%
Investing – reduce risk by diversifying their investment portfolio and have a variety of investments (Q44)
66% 76% 61%
Credit cards – interest free days if paid off in full each month (Q4) 66% 67% 65%
Investing – should take into account return of investment (Q43) 64% 69% 61%
Financial term – ‘liability’ (Q7) 64% 67% 62%
Investing – an investment where the minimum amount to invest keeps reducing might be a scam (Q45)
62% 61% 62%
Financial term – ‘equity’ (Q21b) 61% 66% 58%
Financial records – amount saved on bank statement (Q2c) 60% 70% 54%
Investing – not only invest in property (Q44) 59% 64% 55%
Financial term – ‘net worth’ (Q8b) 58% 57% 59%
Debt management in relation to getting rid of debt faster (Q19) 57% 57% 56%
NZ Superannuation – understanding that it is not asset tested (Q39) 56% 57% 56%
Financial term – ‘rate of return’ (Q7) 56% 63% 52%
Importance of having a budget in relation to the ability to plan (Q11) 56% 60% 53%
Retirement planning – consider current financial situation (Q35) 55% 58% 54%
NZ Superannuation – understanding that it is not income tested (Q38) 54% 52% 55%
Mortgages, in particular that with a variable or floating rate home loan a person can repay in part or in full at any time without penalty (Q24)
54% 54% 54%
Maths and standard literacy in relation to bank statements (Q2d) 53% 60% 48%
Financial advantage of internet banking includes cheaper costs/no fees (Q5) 52% 60% 48%
Mortgages in relation to minimising interest by paying half a monthly payment every fortnight (Q20)
51% 53% 51%
Investing – understanding that an investment scheme with a return higher than average is probably too good to be true (Q41)
51% 50% 52%
Importance of having a budget in relation to the ability to track money (Q11) 48% 46% 49%
Retirement planning – consider retirement income (Q35) 47% 47% 47%
Investing – reduce risk by taking out capital guaranteed investments (Q44) 46% 51% 43%
Savings – compound interest on term deposits (Q31) 43% 50% 38%
Consumer rights and responsibilities – understanding that telling your partner your password is unwise (Q46)
42% 40% 44%
Financial advantage of paying bills on time include qualifying for discount (Q6b) 41% 49% 37%
Financial advantage of paying bills on time includes avoiding being charged interest (Q6b)
37% 39% 36%
Colmar Brunton Page | 28
Knowledge area (continued) % Correct
All
Ngāi Tahu (n=400)
Whai Rawa members
(n=205)
Non-Whai Rawa
members
(n=195)
Retirement – after tax amount of NZ superannuation (Q37) 35% 34% 36%
Retirement planning – consider length of retirement (Q35) 33% 38% 31%
Investing – understanding that a range of shares is likely to make the most money over the next 18 years (Q42)
30% 36% 26%
Mortgages in relation to a revolving credit facility loan (Q24) 28% 32% 26%
Savings – compound interest on savings account (Q28a, Q28b) 28% 34% 25%
Investing – should take into account duration of investment (Q43) 27% 34% 23%
Investing – should take into account liquidity of investment (Q43) 26% 34% 22%
Investing – should take into account cost of investment (Q43) 22% 29% 18%
Financial advantage of paying bills on time includes maximising the interest earned (Q6b)
11% 10% 11%
Colmar Brunton Page | 29
Behaviours
Savings behaviour
Respondents were asked:
Q50) Which one of the following statements best applies to you?
Savings statement that best applies
42%
26%
15%
13%
3%
1%
49%
22%
14%
10%
4%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
I save money on a regular basis
I sometimes save money
I can’t save, there’s never enough money
I save only when I want to save up for something big or special
I don’t save because I don’t need to
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q50
Missing information
While four in ten (42%) Ngāi Tahu respondents said that they save money on a regular basis, this is
significantly less than the New Zealand national average where just under half (49%) said that they
save regularly.
The remaining responses do not vary significantly from the national average with 26% of Ngāi Tahu
respondents saying that they sometimes save money, 15% saying that they can’t save because
there’s never enough money, and 13% saying they save only when they want to save up for
something big or special. A further 3% of respondents said that they don’t save because they don’t
need to.
Colmar Brunton Page | 30
Control of expenses
To establish how people control their expenses, respondents were asked:
Q51) Which one of the following best describes the extent to which you control your
expenses?
37%
31%
19%
12%
39%
34%
22%
5%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Which best describes how they control their expenses
Without keeping written records, I keep a fairly close eye on expenses
I use written or electronic records to keep a close eye on expenses
I keep my eye on expenses a bit
I don’t keep my eye on expenses at all
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q51
Two thirds of Ngāi Tahu respondents said that they keep a close eye on expenses with just over a
third (37%) saying they keep a fairly close eye on expenses without keeping written records, and just
under a third (31%) saying that they keep a close eye on expenses using a written or electronic
record. One in five (19%) said that they keep an eye on their expenses ‘a bit’. However, one in ten
said that they don’t keep an eye on their expenses at all and this is significantly higher than the
national average (12% of Ngāi Tahu c.f. 5% of New Zealanders).
Colmar Brunton Page | 31
Greatest difficulty with money
Respondents were asked several questions to establish what difficulties they have in managing
money.
Q54a) Would you say that generally you have difficulty managing your money?
Q54b) What would you say is your greatest difficulty in managing your money?
Q54c) What other difficulties do you have?
The last two questions were asked of respondents who said they have difficulty managing their
money (Q54a).
The chart below presents the findings to these questions. In the graph on the right, the percentage
at the end of each bar gives the proportion of respondents who mentioned that difficulty at all (either
in response to Q54b or Q54c).
Difficulties in managing money
Base: All respondents Ngai Tahu (n=400)Source: Q54a
14%85%
Yes No
Base: Respondents who generally have difficulty managing their money Ngai Tahu (n=56). NB: Top six difficulties mentioned.
Source: Q54b, Q54c
36%
31%
4%
6%
3%
2%
0% 20% 40% 60%
Greatest difficulty Other difficulties
Whether having difficulty managing
money
Difficulties experienced
In 2009, 16% of New Zealanders said they have difficulty managing
money.
Base: All respondents (n=850)Source: Q54a
50%
40%
16%
16%
16%
14%
Don’t have/earn enough money
Can’t control own behaviour/budget
Increasing prices/inflation
Family commitments/expenses
Usual monthly bills
Unexpected bills/expenses
Reasons for this included not having/earning enough money (49%), unable to control own behaviour/budget (40%), unexpected
bills/payments (27%), family commitments/expenses (17%), and usual monthly bills (11%).
Base: NZ respondents who generally have difficulty managing their money (n=134)Source: Q54b, Q54c
Fourteen percent of Ngāi Tahu respondents said that they have difficulties managing their money,
which is consistent with the national average.
Of the respondents who said that they have difficulty managing their money, the most common
explanations given were that they don’t have or earn enough money (50% commented on this
difficulty with 36% describing this as their greatest difficulty), and that they have a lack of self control
in regard to spending and budgeting (40% commented on this difficulty with 31% describing this as
their greatest difficulty). To a lesser extent, increases in prices, family commitments, usual monthly
bills, and unexpected expenses were also mentioned.
While most of these key difficulties were also mentioned as key difficulties in the national survey,
increases in prices ranked much higher in the Ngāi Tahu survey. The increased financial pressures
Colmar Brunton Page | 32
experienced by many during the recent economic recession may be a contributing factor to this
difference.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Advanced knowledge group are significantly less likely
than those in the Lowest knowledge group to say that they have difficulties managing money (1% of
the Advanced knowledge group c.f. 24% of the Lowest knowledge group).
Similarly, those in the High knowledge group are significantly less likely than those in the Low and
Medium knowledge groups to say that they have difficulties managing money (4% of the High
knowledge group c.f. 21% of the Low knowledge group and 20% of the Medium knowledge group).
Colmar Brunton Page | 33
Attitudes
Attitudes towards financial matters
To measure people’s attitudes towards financial matters, respondents were asked to agree or
disagree with a series of statements:
Q53) Please read each of the statements on the showcard and tell me whether you agree or
disagree with each of the statements.
Financial attitudes
Base: All respondents Ngai Tahu (n=400) New Zealand (850) Source: Q53
90%
91%
85%
85%
82%
88%
75%
75%
69%
72%
59%
72%
52%
57%
51%
57%
33%
26%
28%
21%
25%
26%
3
3
5%
4%
6%
4%
6%
7%
18%
12%
15%
9%
21%
16%
37%
33%
44%
48%
27%
32%
48%
47%
1
1
1
1
1
1
1
1
3
2
2
2
3
4
1
1
1
1
7
11
3
2
1
1
1
1
0% 20% 40% 60% 80% 100%
Total agree Neither/Nor Total disagree Don't know/ understand Missing information
It is important to shop around to get the best deal for financial products and services
I believe I am personally responsible for my financial
future
It is important to have a current will
I feel confident about managing my financial affairs
I know what insurance I need to cover my needs
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Investing is a way to achieve financial goals
If I had a major loss of income I could manage for 3
months
If I were investing I would take into account ethical,
environmental and social factors when deciding
where to invest
I have worked out how much I need for my
retirement
I think I manage OK, but some of the financial
decisions made by other members of my family are not so good
People with KiwiSaver will have an adequate
retirement income
Colmar Brunton Page | 34
Financial attitudes (continued)
Base: All respondents Ngai Tahu (n=400) New Zealand (n=850) Source: Q53
24%
16%
22%
22%
20%
22%
13%
7%
7%
10%
4
9%
59%
67%
59%
58%
57%
55%
69%
76%
81%
79%
87%
80%
2
4
1
1
0% 20% 40% 60% 80% 100%
Total agree Neither/Nor Total disagree Don't know/ understand Missing information
I find it hard to make ends meet because there is not enough money
I spend all my income as I get it
I find that I have to borrow short term to make ends meet
I feel out of control with my borrowing and debt generally
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Because of NZ Superannuation I don’t need to save for retirement
I don’t really plan for the future
Comparisons between Ngāi Tahu and the national average
When comparing Ngāi Tahu to the national average, Ngāi Tahu are more likely to agree with the
following statements:
� I think I manage OK, but some of the financial decisions made by other members of my family are not so good (33% of Ngāi Tahu c.f. 26% of New Zealanders)
� I spend all my income as I get it (24% of Ngāi Tahu c.f. 16% of New Zealanders)
� People with KiwiSaver will have an adequate retirement income (28% of Ngāi Tahu c.f. 21% of New Zealanders)
� Because of NZ Superannuation I don’t need to save for retirement (13% of Ngāi Tahu c.f. 7% of New Zealanders).
The comparatively high proportion of Ngāi Tahu respondents that are KiwiSaver members (discussed
later in this report), may have influenced the above difference in attitudes towards KiwiSaver.
Ngāi Tahu are less likely than average to agree with the following statements:
� I believe I am personally responsible for my financial future (82% of Ngāi Tahu c.f. 88% of New Zealanders)
� Investing is a way to achieve financial goals (59% of Ngāi Tahu c.f. 72% of New Zealanders)
� If I had a major loss of income I could manage for 3 months (51% of Ngāi Tahu c.f. 57% of New Zealanders)
� I feel out of control with my borrowing and debt generally (4% of Ngāi Tahu c.f. 9% of New Zealanders).
In addition to the above, Ngāi Tahu are also more likely than average to disagree with the following
statements:
Colmar Brunton Page | 35
� I know what insurance I need to cover my needs (18% of Ngāi Tahu c.f. 12% of New Zealanders)
� If I were investing I would take into account ethical, environmental and social factors when deciding where to invest (21% of Ngāi Tahu c.f. 16% of New Zealanders).
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Low knowledge group are significantly more likely to
agree with almost all the negative financial attitudinal statements, and are significantly less likely to
agree with almost all the positive financial attitudinal statements, when compared to the High
knowledge group4.
A similar pattern is evident when comparing the Lowest knowledge group and the Advanced
knowledge group but to a stronger degree5.
4 The exceptions to this, where the differences are weaker between the groups, are for the statements ‘I have worked out how much I need for my retirement’ and ‘I think I manage OK, but some of the financial decisions made by other members of my
family are not so good’.
5 Exceptions to this are the following attitudinal statements: ‘I feel confident about managing my financial affairs’, ‘I have worked out how much I need for my retirement’, and ‘I think I manage OK, but some of the financial decisions made by other
members of my family are not so good’.
Colmar Brunton Page | 36
Perceptions of control over life
Respondents were asked a general question about their perceptions of control over their life. They
were asked:
Q59) How much do you agree or disagree with the following statements?
a) My life is determined by my own actions
b) My life is determined by things beyond my control
c) My life is controlled by the actions of other people.
79%
8%
5%
18%
31%
25%
1
20%
17%
1
23%
27%
17%
27%
0% 20% 40% 60% 80% 100%
Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree
My life is determined by my own actions
My life is determined by things beyond my control
My life is controlled by the actions of other people
Perceptions of control over your life
Base: All respondents Ngai Tahu (n=400)Source: Q59Note: Results from the 2009 national financial knowledge survey are not publicly available.
Over three quarters (79%) of Ngāi Tahu respondents strongly agree that their life is determined by
their own actions, and less than one in ten (8%) strongly agree that life is determined by things
beyond their control. Only a very small proportion of respondents (5%) strongly agree that their life
is controlled by the actions of other people.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Lowest knowledge group are significantly less likely than
those in the Advanced knowledge group to agree (nett) that their life is determined by their own
actions (85% of the Lowest knowledge group c.f. 98% of the Advanced knowledge group).
Similarly, those in the Low knowledge group are significantly less likely than those in the High
knowledge group to agree (nett) that their life is determined by their own actions (93% of the Low
knowledge group c.f. 100% of the High knowledge group).
Colmar Brunton Page | 37
Current financial situation
Indicators of financial strain
The following question was asked to provide an indication of financial strain:
Q52) In the last 12 months, have any of the following happened to you [or your partner]?
(A list of the following statements were shown using showcards.)
a) Couldn’t keep up with payments for electricity or gas
b) Couldn’t keep up with payments for mortgage or rent
c) Couldn’t keep up with payments for hire purchase or credit cards
d) You borrowed money from family or friends
e) You received help in the form of food from community organisations
f) You sold something out of necessity because you really needed the money
g) You were gifted money from family and friends6.
19%
12%
12%
9%
8%
5%
0% 5% 10% 15% 20% 25%
You borrowed money from family or friends
Couldn't keep up with payments for hire purchase or credit cards
Couldn't keep up with payments for electricity or gas
Couldn't keep up with payments for mortgage or rent
You sold something out of necessity because you really needed the money
You received help in the form of food from community organisations
Indicators of financial strain
Base: All respondents Ngai Tahu (n=400)Source: Q52Note: Results from the 2009 national financial knowledge survey are not publicly available.
In the past 12 months, 38% of Ngāi Tahu respondents have taken some sort of action that indicates
financial strain. Turning to family or friends for financial help is the most common action with 19%
borrowing money from family or friends.
6 26% of respondents said they were gifted money from family and friends. This has not been included in the following
analysis because it was decided at the analysis stage that this category is not necessarily always an indicator of financial strain.
Colmar Brunton Page | 38
Twenty-four percent of respondents were unable to keep up with some type of payment (for hire
purchases, credit cards, utilities, mortgage, or rent) in the past 12 months.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Advanced knowledge group are significantly more likely
than those in the Lowest knowledge group to have experienced financial strain in the past 12 months
(22% of the Advanced knowledge group c.f. 55% of the Lowest knowledge group).
Similarly, those in the High knowledge group are significantly less likely than those in the Low and
Medium knowledge groups to have experienced financial strain in the past 12 months (30% of the
High knowledge group c.f. 44% of the Low knowledge group and 41% of the Medium knowledge
group).
Those in the Advanced knowledge group are significantly more likely than those in the Lowest
knowledge group to have struggled in the past 12 months to keep up with payments (9% of the
Advanced knowledge group c.f. 33% of the Lowest knowledge group).
Colmar Brunton Page | 39
Financial situation compared to 12 months ago
Current financial situation
Respondents were asked the following question about their financial situation:
Q55a) Compared to 12 months ago, would you say that your financial situation is now worse,
about the same, or better?
33%
45%
21%
1%
Better
About the same
Worse
Financial situation compared to 12 months ago
Base: All respondents Ngai Tahu (n=400)Source: Q55aNote: Results from the 2009 national financial knowledge survey are not publicly available.
Don’t know
A third (33%) of Ngāi Tahu respondents said that their financial position was better compared to 12
months ago, just under half (45%) said it was about the same, one in five (21%) said their financial
position was worse, and 1% were unsure.
Colmar Brunton Page | 40
Factors contributing to worsened financial situation
Respondents were given a list of factors that might contribute to a worsened financial situation.
Respondents were then asked the following questions:
Q55b) Can you please tell me what, if any, of the following have happened to you in the
past 12 months?
Q55c) Is there anything not on this list that has made your financial situation worse in any
way in the past 12 months?
25%
18%
13%
10%
9%
8%
6%
6%
5%
4%
3%
29%
11%
0% 10% 20% 30% 40% 50%
A drop in income/reduced hours
Reduction in value of assets
Illness (not requiring hospitalisation)
Three months or more of being unemployed
A major injury or health problem
Legal costs
Separated from my partner
Being made redundant
A pregnancy/birth of a child
House or garage burgled
Became a solo parent
None of the above
Other
Factors contributing to worsened financial situation
Base: All respondents Ngai Tahu (n=400)Source: Q55b & Q55cNotes: Statements 2% or less not shown. Results from the 2009 national financial knowledge survey are not publicly available.
A drop in income/reduced hours of work (25%) and a reduction in the value of assets (18%) are the
most common situations that have the potential to result in a worsened financial situation.
To a lesser extent, illness (13%) and a period of unemployment (10%) have also been experienced.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the High knowledge group are significantly more likely than
those in the Lowest knowledge group to have experienced a reduction in the value of assets (25% of
the High knowledge group c.f. 10% of the Low knowledge group).
Conversely, those in the Low knowledge group are significantly more likely than those in the High
knowledge group to have experienced the following:
� three months or more of being unemployed (17% of the Low knowledge group c.f. 5% of the High knowledge group)
� being made redundant (11% of the Low knowledge group c.f. 4% of the High knowledge group).
Colmar Brunton Page | 41
Those in the Advanced knowledge group are significantly more likely than those in the Lowest
knowledge group to have experienced the following:
� a reduction in the value of assets (36% of the Advanced knowledge group c.f. 3% of the Lowest knowledge group)
� legal costs (19% of the Advanced knowledge group c.f. 0% of the Lowest knowledge group).
Conversely, those in the Lowest knowledge group are significantly more likely than those in the
Advanced knowledge group to have experienced three months or more of being unemployed (21% of
the Lowest knowledge group c.f. 3% of the Advanced knowledge group).
Colmar Brunton Page | 42
Awareness and concern over financial situation
Respondents were asked the following questions:
Q56a) Compared to 12 months ago, would you say that you are now more aware of your
financial situation, less aware, or about the same?
Q56b) Compared to 12 months ago, would you say that you are now more concerned about
your financial situation, less concerned, or about the same?
Base: All respondents Ngai Tahu (n=400)Source: Q56a & Q56bNote: Results from the 2009 national financial knowledge survey are not publicly available..
47%
33%
51%
55%
1
10% 12
0% 20% 40% 60% 80% 100%
More About the same Less Don't know Missing information
Compared to 12 months ago, would you say that you are now more aware of your financial situation, less aware, or about
the same?
Compared to 12 months ago, would you say that you are now more concerned
about your financial situation, less concerned, or about the same?
Awareness and concern over financial situation compared to 12 months ago
Nearly half (47%) of respondents said that they are currently more aware of their financial situation
compared to 12 months ago, 51% said they have the same awareness, and 1% said they are less
aware.
A third (33%) of respondents said they are more concerned about their financial situation compared
to 12 months ago, just over half (55%) said they feel about the same, and 10% said they are less
concerned.
Those who are more aware of their current financial situation are more likely than the Ngāi Tahu
average to be more concerned about their financial situation (48% of those who are more aware c.f.
33% of Ngāi Tahu).
Analysis by knowledge group (among Ngāi Tahu respondents)
Awareness of financial situation
Among Ngāi Tahu respondents, those in the Low knowledge group are significantly more likely than
those in the Medium and High knowledge groups to say that they are now more aware of their
financial situation compared to 12 months ago (61% of the Low knowledge group c.f. 46% of the
Medium knowledge group and 37% of the High knowledge group).
Colmar Brunton Page | 43
Concern for financial situation
Those in the Lowest knowledge group are significantly less likely than those in the Advanced
knowledge group to say that they are now less concerned about their financial situation compared to
12 months ago (0% of the Lowest knowledge group c.f. 16% of the Advanced knowledge group).
Colmar Brunton Page | 44
Financial advice
Financial information or advice used in past 12 months
The following question was asked to establish sources of financial information and advice.
Q57) In the past 12 months, which of the following, if any, have provided you with financial
information or advice?
Financial information or advice used in past 12 months
52%
38%
23%
20%
18%
16%
7%
5%
4%
4%
19%
1%
1%
51%
35%
20%
23%
18%
21%
3%
6%
4%
2%
21%
1%
0% 10% 20% 30% 40% 50% 60%
Your bank
Friends/relatives
Websites
Newspapers/magazines/leaflets
Financial Advisor
TV programmes
Budgeting advisory services
Seminar/Course/Ed program
Church
Citizens Advice Bureau
Haven't received any help
Don't know
Missing information
Ngai Tahu
New Zealand
Base: All respondents Ngai Tahu (n=400) New Zealand (n=850) Source: Q57
A separate question (detailed later in this
section) shows that 27% of Ngai Tahu respondents
have used Sorted resources in the last 12
months.
Four in five (79%) Ngāi Tahu respondents have obtained some type of financial information or advice
in the past 12 months. Banks (52%) are the most common source of financial information or advice,
followed by friends and family (38%). As reported on later in this section of the report, 27% of Ngāi
Tahu respondents have used Sorted resources in the last 12 months.
While these results are generally consistent with the national results, Ngāi Tahu respondents are
more likely than the national average to receive financial information or advice from budgeting
advisory services (7% of Ngāi Tahu c.f. 3% of New Zealanders) and less likely than the national
average to receive financial information or advice from TV programmes (16% of Ngāi Tahu c.f. 21%
of New Zealanders).
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, the Lowest knowledge group is significantly more likely than the
Advanced knowledge group to obtain financial information or advice from church (12% of the Lowest
knowledge group c.f. 0% of the Advanced knowledge group).
Conversely, the Advanced knowledge group is significantly more likely than the Lowest knowledge
group to obtain financial information or advice from the following places:
� their bank (57% of the Advanced knowledge group c.f. 25% of the Lowest knowledge group)
Colmar Brunton Page | 45
� websites (33% of the Advanced knowledge group c.f. 7% of the Lowest knowledge group)
� newspapers/magazines/leaflets (29% of the Advanced knowledge group c.f. 7% of the Lowest knowledge group).
Those in the Low knowledge group are more likely than those in the High knowledge group to obtain
financial information or advice from the following places:
� church (9% of the Low knowledge group c.f. 1% of the High knowledge group)
� budgeting advisory services (12% of the Low knowledge group c.f. 3% of the High knowledge group).
They are also more likely to say that they haven’t received any help in the past 12 months (26% of
the Low knowledge group c.f. 16% of the High knowledge group).
Conversely, those in the High knowledge group are more likely than those in the Low knowledge
group to obtain financial information or advice from the following places:
� their bank (58% of the High knowledge group c.f. 35% of the Low knowledge group)
� a financial advisor (25% of the High knowledge group c.f. 10% of the Low knowledge group)
� websites (35% of the High knowledge group c.f. 9% of the Low knowledge group)
� newspapers/magazines/leaflets (25% of the High knowledge group c.f. 11% of the Low knowledge group).
Colmar Brunton Page | 46
Factors or situations that would lead to seeking financial advice
To determine the type of factors or situations that would lead individuals to seek financial information
or advice, respondents were asked the following question:
Q57b) What would lead you to seek financial information or advice on managing your
personal finances?
34%
19%
10%
10%
8%
6%
6%
5%
4%
4%
4%
4%
4%
4%
15%
0% 10% 20% 30% 40% 50%
If I struggled to pay bills/had financial difficulties
If I had more money/earned more money
If I was trying to avoid/get out of debt
If I had a loss/decrease of income/experienced unemployment
If I was trying to save for something
If I was buying a house
If there was a death in the family
If I was going to invest
If information or training was simplified/easier to understand
If I was getting married/going to have kids
If someone directed me to the right programme/person to talk to
If I was more confident in my ability to make financial decisions
If information or training was provided close by
I don't know where to start
Don't know
Factors or situations that would lead to seeking financial information or advice
Base: All respondents Ngai Tahu (n=400)Source: Q57bNotes: Statements 3% or less not shown. This question was only asked in the Ngai Tahu Financial Knowledge Survey.
The most common situation that would lead Ngāi Tahu respondents to seek financial information or
advice would be during times of financial strain - if they struggled to pay bills (34%), if they were
trying to avoid/get out of debt (10%), and if they experienced a loss or decrease in income (10%) –
or if they had more money (19%).
Colmar Brunton Page | 47
Preference for receiving financial information
To gain an understanding of people’s preference for receiving financial information or advice on
managing personal finances, respondents were asked the following question and were provided with
a list of options to choose from:
Q57c) How would you prefer to receive financial information or advice on managing your
personal finances?
50%
39%
37%
25%
19%
19%
18%
18%
18%
17%
9%
6%
4%
1%
3%
2%
3%
0% 10% 20% 30% 40% 50%
Your bank
Family/relatives/friends
Financial advisor
Websites
Budgeting advisory services
Seminar/training course/educational programmes
Marae based learning
Take home work book
Written information
TV programmes
Citizens Advice Bureau
Church
Ngai Tahu
Other
Don't know
None
Preference for receiving financial information or advice on managing personal finances
Base: All respondents Ngai Tahu (n=400)Source: Q57cNote: This question was only asked in the Ngai Tahu Financial Knowledge Survey.
Half (50%) of Ngāi Tahu respondents said that they would prefer to receive financial information or
advice on managing their personal finances via their bank. Two in five (39%) said they prefer to
receive information or advice via family or friends, 37% said via a financial advisor, and a quarter
(25%) said via websites.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Lowest knowledge group are significantly less likely than
those in the Advanced knowledge group to prefer to receive financial information through the
following channels:
� financial advisors (13% of the Lowest knowledge group c.f. 45% of the Advanced knowledge group
� websites (10% of the Lowest knowledge group c.f. 40% of the Advanced knowledge group)
� email (3% of the Lowest knowledge group c.f. 18% of the Advanced knowledge group)
� written information (7% of the Lowest knowledge group c.f. 27% of the Advanced knowledge group).
Those in the Low knowledge group are significantly less likely than those in the High knowledge
group to prefer to receive financial information through the following channels:
Colmar Brunton Page | 48
� financial advisors (25% of the Low knowledge group c.f. 45% of the High knowledge group)
� websites (13% of the Low knowledge group c.f. 35% of the High knowledge group)
� email (10% of the Low knowledge group c.f. 24% of the High knowledge group)
� written information (8% of the Low knowledge group c.f. 25% of the High knowledge group)
� TV programmes (5% of the Low knowledge group c.f. 13% of the High knowledge group).
In addition to the above, those in the Low knowledge group are significantly more likely than those in
the High knowledge group to say that they prefer not to receive information (6% of the Low
knowledge group c.f. 0% of the High knowledge group).
Analysis by Whai Rawa membership
Whai Rawa members are significantly more likely than non-members to prefer to receive financial
information through the following channels:
� their bank (57% of Whai Rawa members c.f. 46% of non-members)
� seminar/training courses/educational programmes (26% of Whai Rawa members c.f. 15% of non-members)
Whai Rawa members are significantly less likely than non-members to prefer to receive financial
information through a church (1% of Whai Rawa members c.f. 6% of non-members).
Colmar Brunton Page | 49
Sorted
To evaluate the awareness and use of Sorted information sources, the following questions were
asked:
I have an example here of some financial information that is available for New Zealanders.
This information is referred to as ‘Sorted’ information and is available in leaflets like this one
and there is also a ‘Sorted’ website.
Q58a) Have you ever read a Sorted booklet or visited the sorted.org.nz website?
If Yes: Q58b) In the last 12 months have you read a Sorted Booklet or visited the
sorted.org.nz website?
The results to both questions are presented in the following chart. Both percentages have been
calculated as a proportion of the total sample.
Base: All respondents Ngai Tahu (n=400) New Zealand (n=850) Source: Q58a and 58b
Read a Sorted booklet or visited Sorted website
43%
27%
34%
24%
0% 10% 20% 30% 40% 50% 60%
Ever
In last 12 months
Ngai Tahu
New Zealand
Four in ten (43%) of Ngāi Tahu respondents have at some point in time read a Sorted booklet or
visited the Sorted website. This is significantly higher than the national average where only a third
(34%) have done so.
Just over a quarter (27%) of respondents have read a Sorted booklet or visited the Sorted website in
the last 12 months, which is consistent with national results.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Advanced knowledge group (65%) and those in the High
knowledge group (57%) are significantly more likely to have at some point in time read a Sorted
booklet or visited the Sorted website (compared to 9% in the Lowest knowledge group, 22% in the
Colmar Brunton Page | 50
Low knowledge group, and 46% in the Middle knowledge group – although the latter is only
significant at the 90% confidence level).
Colmar Brunton Page | 51
Financial product ownership
Products owned
Respondents were asked:
Q95) Can you please tell me which of these you have? (A list of products was shown on a
showcard)
90%
82%
80%
79%
60%
43%
35%
34%
32%
29%
22%
87%
85%
73%
69%
66%
40%
23%
29%
27%
24%
28%
0% 20% 40% 60% 80% 100%
Ngai TahuNew Zealand
Savings account
Cheque/transaction/current a/c
Vehicle insurance
House/contents insurance
Credit Card
Private health insurance
Mortgage/loan on home live in/holiday home
KiwiSaver
Term deposit/term investment
Store Card
Personal overdraft
Product ownership
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q95
21%
21%
20%
19%
18%
18%
17%
16%
11%
10%
8%
18%
15%
14%
17%
15%
22%
17%
11%
17%
10%
8%
0% 20% 40% 60% 80% 100%
Ngai TahuNew Zealand
Shares
Lease or hire purchase
Other deposit accounts
Work based retirement savings/ superannuation
Unit trust/ Managed fund
High interest call account
Mortgage/loan on other properties owned
Government student loan
Revolving credit
Personal loan
Personal retirement savings/superannuation
As with the national survey, the most commonly held products and services owned among Ngāi Tahu
respondents are cheque/transaction/current accounts (held by 90%), and savings accounts (held by
82%).
When compared to the national average, Ngāi Tahu are more likely to have the following:
� vehicle insurance (80% of Ngāi Tahu c.f. 73% of New Zealanders)
� house/contents insurance (79% of Ngāi Tahu c.f. 69% of New Zealanders)
� personal overdraft (35% of Ngāi Tahu c.f. 23% of New Zealanders)
� lease or hire purchase (21% of Ngāi Tahu c.f. 15% of New Zealanders)
� work based retirement savings/superannuation (20% of Ngāi Tahu c.f. 14% of New Zealanders)
� unit trust/managed fund (16% of Ngāi Tahu c.f. 11% of New Zealanders).
Conversely, Ngāi Tahu are less likely to have the following:
� credit card (60% of Ngāi Tahu c.f. 66% of New Zealanders)
� term deposit/term investment (22% of Ngāi Tahu c.f. 28% of New Zealanders)
� high interest call account (11% of Ngāi Tahu c.f. 17% of New Zealanders).
Colmar Brunton Page | 52
Detailed analysis of product ownership by the knowledge groups is provided in an earlier section
entitled ‘Financial knowledge groups’.
Colmar Brunton Page | 53
Credit card repayment behaviour
Respondents were asked:
Q96) Do you tend to pay off your credit card in full every month or do you tend to leave
some money owing?
Credit card ownership and repayment
Base: All respondents with a credit card Ngai Tahu (n=247), New Zealand (n=556)Source: Q96
60%
66%
0%
20%
40%
60%
80%
100%
Have Credit Card
Ngai Tahu New Zealand
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q95
50% 48%
68%
31%
0%
20%
40%
60%
80%
100%
In full Leave some owing
Ngai Tahu New Zealand
Proportion with credit card
How pay off
When compared to the national average, a significantly smaller proportion of Ngāi Tahu said that they
have a credit card (60% of Ngāi Tahu c.f. 66% of New Zealanders). Of Ngāi Tahu respondents who
do have a credit card, the proportion who pay it off in full every month is significantly less than the
national average (50% of Ngāi Tahu c.f. 68% of New Zealanders), while those who tend to leave
some owing is significantly higher than the national average (48% of Ngāi Tahu c.f. 31% of New
Zealanders).
Colmar Brunton Page | 54
Money management
General
Payment methods
Respondents were asked:
Q1) There are many different ways of paying for things such as groceries, your power bill and
your mortgage or home loan. Which of the following payment methods do you yourself use?
Payment methods used
88%
85%
53%
52%
46%
41%
83%
77%
47%
50%
49%
42%
0% 20% 40% 60% 80% 100%
EFTPOS
Cash
Internet Banking
Automatic Payment
Credit Cards
Direct Debit
Ngai Tahu New Zealand
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q1
27%
17%
16%
12%
7%
1%
2%
38%
11%
9%
17%
5%
1%
0% 20% 40% 60% 80% 100%
Cheques
Hire Purchase
Store Cards
Telephone banking
Laybys
Money Orders
Other
Ngai Tahu New Zealand
EFTPOS and cash are the most commonly used payment methods with 88% and 85% of Ngāi Tahu
respondents (respectively) using these. When compared to the national average, the following
payment methods are used by a greater proportion of Ngāi Tahu:
� EFTPOS (88% of Ngāi Tahu c.f. 83% of New Zealanders)
� cash (85% of Ngāi Tahu c.f. 77% of New Zealanders)
� internet banking (53% of Ngāi Tahu c.f. 47% of New Zealanders)
� hire purchase (17% of Ngāi Tahu c.f. 11% of New Zealanders)
� store cards (16% of Ngāi Tahu c.f. 9% of New Zealanders).
Conversely, the following payment methods are used by a significantly smaller proportion of Ngāi
Tahu:
� cheques (27% of Ngāi Tahu c.f. 38% of New Zealanders)
� telephone banking (12% of Ngāi Tahu c.f. 17% of New Zealanders).
Colmar Brunton Page | 55
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the High knowledge group are significantly more likely than
those in the Low knowledge group to use the following payment methods:
� cheques (34% of the High knowledge group c.f. 20% of the Low knowledge group)
� credit card (64% of the High knowledge group c.f. 22% of the Low knowledge group)
� EFTPOS (92% of the High knowledge group c.f. 81% of the Low knowledge group)
� direct debit (52% of the High knowledge group c.f. 25% of the Low knowledge group)
� automatic payment (62% of the High knowledge group c.f. 40% of the Low knowledge group)
� Internet banking (70% of the High knowledge group c.f. 30% of the Low knowledge group).
These differences are even more pronounced for the Advanced knowledge group and the Lowest
knowledge group, except for EFTPOS where the difference is less marked.
Colmar Brunton Page | 56
Numeracy
Bank statements
Respondents were asked a series of questions relating to bank statements. Results to the first three
questions (Q2a, Q2b and Q2c) asked are reported later in this section entitled Banking. Results to
the last question (Q2d) are presented below.
Now I’m going to show you an example of a bank statement and I will ask you some
questions about it. Please look closely at this bank statement and can you tell me:
Q2d) How many months would it take them to save another $10,000?
Colmar Brunton Page | 57
Bank statement – correct: time taken to save another $10,000
Base: All respondents who are aware have saved Ngai Tahu (n=328), New Zealand (n=692)Source: Q2d
65%
74%
0%
20%
40%
60%
80%
100%
Ngai Tahu New Zealand
The correct identification of the time required (13 months/12.5 months) was identified by two thirds
(65%) of the Ngāi Tahu respondents who were asked this question. This is significantly lower than
the national average where three quarters (74%) gave the correct answer.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, knowledge of the correct time required to save is significantly lower
for the Lowest knowledge group where only 7% recognised that savings were made and could
correctly calculate the correct number of months required to save.
Colmar Brunton Page | 58
Months to save
Respondents were asked a series of questions relating to saving money. They were able to use a
calculator or paper for any questions that required calculation.
Q27) Jane has a job with a take home pay of $1,600 per month. She must pay $400 for rent
and $200 for groceries each month. She also spends $200 per month on transport. If she
budgets $200 each month for clothing, $200 for restaurants and $200 for everything else,
how many months will it take her to save $2,000?
Take home pay $1600 per month -how many months to save $2000?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q27
• $400 rent
• $200 groceries
• $200 transport
• $200 restaurants • $200 everything else
• $200 clothing
6%
13%
80%
1%
3%
15%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Don’t understand
Don’t know
Other
Correct - 10 months
Ngai Tahu New Zealand
The proportion of Ngāi Tahu respondents (82%) who correctly calculated that it would take Jane ten
months to save $20,000 is consistent with the national results.
Colmar Brunton Page | 59
Understanding financial terms
Definition of terms
Respondents were asked to match financial terms with definitions:
Q7) I have here one set of cards with different terms on them and another set of cards that
have definitions. There are more definition cards than terms. I would like you to find the
best match between the terms and the definitions.
Correct match of financial terms
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q7
91%
82%
76%
68%
64%
56%
89%
85%
74%
67%
63%
66%
0% 20% 40% 60% 80% 100%
Savings
Term Deposit
Asset
Capital Gain
Liability
Real Rate of Return
Ngai Tahu New Zealand
Ngāi Tahu respondents’ understanding of financial terminology is consistent with the national results
for five of the six terms. Understanding of the financial term ‘real rate of return’ is significantly lower
than average with only 56% of respondents giving the correct definition compared to 66% of New
Zealanders.
The following chart looks at understanding of the financial terms by product ownership.
Colmar Brunton Page | 60
Correct match of financial terms by ownership
92%
89%
80%
60%
90%
89%
73%
67%
90%
80%
57%
35%
87%
83%
59%
54%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Have Savings Account
Do not have Savings Account
Have Term Deposit
Have Mortgage on Home Lived in
Have Savings/Investment
Savings
Do not have Term Deposit
Do not have Mortgage on Home Lived in
Do not have Savings/Investment
Term Deposit
Liability
Real Rate of Return
Base: Varies by product ownershipSource: Q7
Ownership of financial products tends to result in a greater understanding of the relevant financial
terms. As discussed previously, the proportion of Ngāi Tahu respondents who had a correct
understanding of the term ‘real rate of return’ is significantly lower than the national average and this
is regardless of product ownership (i.e. among those that have savings/investments, only 60% of
Ngāi Tahu understand the term compared to 67% of New Zealanders; and among those that do not
have savings/investments, only 35% of Ngāi Tahu understand the term compared to 54% of New
Zealanders).
Colmar Brunton Page | 61
Net worth
Respondents were initially asked:
Q8a) Do you know what the term ‘net worth’ means?
Respondents who said they knew what ‘net worth’ means were presented with a showcard which
included four statements.
Q8b) To know how much wealth you have, you need to measure your net worth. ‘Net worth’
means…
a) The difference between your expenditure (what you spend) and income (what you earn or
receive)
b) The difference between your assets (all that you own) and your liabilities (all that you owe)
c) The difference between your bank borrowings and savings
d) None of the above
Net worth
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q8a
Yes - Know what ‘net worth’ means
Prompted meaning of ‘net worth’
Base: Respondents who stated they knew what ‘net worth’ means Ngai Tahu (n=281), New Zealand (n=588)
Source: Q8b
70% 68%
0%
20%
40%
60%
80%
100%
All respondents
Ngai Tahu New Zealand
83%
9%
86%
8%
0%
20%
40%
60%
80%
100%
Correct - Difference between your assets and your
liabilities
Difference between your expenditure and your income
Ngai Tahu New Zealand
Using both questions, 58% of all Ngai Tahu respondents knew the correct definition
compared to 59% of allNew Zealanders. This
difference is not statistically significant.
Seventy percent of Ngāi Tahu respondents said that they know what the term ‘net worth’ means.
Among these respondents, 83% selected the correct definition of ‘the difference between your assets
(all that you own) and your liabilities (all that you owe)’, while 9% selected the wrong definition ‘the
difference between your expenditure (what you spend) and income (what you earn or receive)’.
As a proportion of all Ngāi Tahu respondents, 58% knew the correct definition of net worth.
All of these results are consistent with the national results.
Colmar Brunton Page | 62
Gross salary
Respondents were asked:
Q9) And now a question about tax. Is a person’s gross salary before or after tax?
Gross salary before or after tax
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q9
88%
9%
2%
89%
9%
2%
0% 20% 40% 60% 80% 100%
Correct - Before tax
After tax
Don't know
Ngai Tahu New Zealand
Nine out of ten (88%) Ngāi Tahu respondents correctly said that gross salary is before tax. This is
consistent with the national results.
Colmar Brunton Page | 63
Secured loans
Respondents were asked:
Q17a) Do you know what the term ‘secured loan’ means?
81%78%
0%
20%
40%
60%
80%
100%
Have personal loan or mortgage
Ngai Tahu New Zealand
76%
70%
0%
20%
40%
60%
80%
100%
All respondents
Ngai Tahu New Zealand
Secured loan
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q17a
Yes - Know what ‘secured loan’ means
Yes - Know what ‘secured loan’ means
Base: Have personal loan or mortgage Ngai Tahu (n=190), New Zealand (n=314)Source: Q17a
Three quarters (76%) of Ngāi Tahu respondents said that they know what the term ‘secured loan’
means. This is significantly higher than the national average of 70%.
Ngāi Tahu respondents with a personal loan or mortgage are significantly more likely than those
without a personal loan or mortgage to know the meaning of ‘secured loan’ (81% of Ngāi Tahu
respondents with a personal loan or mortgage c.f. 70% of Ngāi Tahu respondents without a personal
loan or mortgage).
Colmar Brunton Page | 64
If respondents said they knew what the term ‘secured loan’ means, they were asked a question to
determine the extent of their knowledge.
Q17b) If someone is not able to make the repayments on a secured loan, is the organisation
that lent them the money allowed to sell the assets that were used as security for the loan?
If unable to meet repayments on secured loan, whether can sell assets
Base: All respondents who say they know what ‘secured loan’ means Ngai Tahu (n=307), New Zealand (n=599)Source: Q17b
92%
8%
92%
4%
2%
0% 20% 40% 60% 80% 100%
Correct - Yes
No
Don't know
Ngai Tahu New Zealand
Of the Ngāi Tahu respondents who said they knew what the term ‘secured loan’ means, 92%
correctly agreed that the organisation lending the money is able to sell the assets that were used as
security for the loan if the repayments are unable to be made. This is consistent with the national
results.
However, a significantly larger portion of respondents disagreed with this (8% of Ngāi Tahu c.f. 4%
of New Zealanders) and this is down from a smaller proportion who said they were unsure.
Colmar Brunton Page | 65
Equity and leverage
Respondents were asked:
Q21a) Do you know what the term ‘equity’ means?
Those who said they knew the meaning of ‘equity’ were then asked a question to determine if they
did in fact know the meaning.
Q21b) Mike owns a house worth $275,000 and has a home loan of $125,000. What is his
equity in the house?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q21a
Base: Respondents who stated they knew what ‘equity’ means Ngai Tahu (n=281), New Zealand (n=577)
Source: Q21b
Equity
Know what ‘equity’ means
Mike owns a house worth $275,000 and has a home loan of $125,000. What is his equity in the house?
69%
28%
2%
66%
30%
4%
0% 20% 40% 60% 80%
Yes
No
Don't know
Ngai Tahu New Zealand
89%92%
0%
20%
40%
60%
80%
100%
Correct - $150,000
Ngai Tahu New Zealand
Seven in ten (69%) Ngāi Tahu respondents said that they knew what the term ‘equity’ means. Of
those who said that they knew the meaning, 89% correctly calculated the equity in the scenario
presented. This is consistent with the national results.
By drawing on responses to both questions, the next chart presents the level of correct knowledge of
the meaning of equity among the total sample.
Colmar Brunton Page | 66
Base: VariesSource: Q21a, Q21b
Equity (combining both questions) – correct answer
61%
79%
52%
61%
80%
50%
0%
20%
40%
60%
80%
100%
All respondents Have mortgage on home Don't have mortgage on home
Ngai Tahu New Zealand
As a proportion of all Ngāi Tahu respondents, three in five (61%) understood the term ‘equity’, which
is consistent with the national results. While those with a mortgage are more likely than those
without a mortgage to understand the term, this is also consistent with the national results.
Colmar Brunton Page | 67
Credit cards
Credit card payments
Respondents’ understanding of credit card payments was tested with the following question:
Q4) Please tell me which of the following statements are true and which are false?
a) If John pays off the full amount on his credit card each month he gets interest-free days
on purchases
b) If John only pays the minimum payment each month he still owes money after the
minimum payment.
66%
66%
83%
85%
15%
15%
7%
5%
19%
19%
8%
10%
1
1
1
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
True False Don't know Don't understand Missing information
Credit card
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q4
Pay off full amount on credit card, get interest-free days
If only pay minimum amount, still owes money after minimum payment
Correct = True
Correct = True
Two thirds (66%) of Ngāi Tahu respondents correctly identified that paying off the full amount on the
credit card each month would give John interest-free days on purchases, while four in five (83%)
respondents correctly identified that John would still owe money if he only pays the minimum
payment each month. Both results are consistent with the national results.
The next chart presents these results by credit card ownership.
Colmar Brunton Page | 68
82%
75%
43%
48%
94%
94%
68%
68%
10%
13%
21%
19%
5
2
11%
10%
8%
12%
34%
32%
1
4
19%
21%
1
2
1
1
1
1
1
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
True False Don't know Don't understand Missing information
Credit card
Base: Varies by credit card ownershipSource: Q4
Pay off full amount on credit card, get interest-free days
If only pay minimum amount, still owes money after minimum payment
Have Credit Card
Do not have Credit Card
Have Credit Card
Do not have Credit Card
Correct = True
Correct = True
As expected, credit card holders have higher levels of knowledge relating to credit card payments
than those who do not own a credit card. However, respondents from this survey who had a credit
card were more likely than those from the national survey to correctly identify that paying off the full
amount on the credit card each month would give John interest-free days on purchases (82% of Ngāi
Tahu c.f. 75% of New Zealanders).
Although the proportion for respondents from this survey who have a credit card are just as likely as
those from the national survey to correctly identify that John would still owe money if he only pays
the minimum payment each month, Ngāi Tahu respondents are also more likely to give the incorrect
answer (5% of Ngāi Tahu c.f. 2% of New Zealanders).
Colmar Brunton Page | 69
Banking
Bank statements
Respondents were asked a series of questions relating to bank statements. Results to the last
question (Q2d) were reported earlier in the section entitled Numeracy. The results to the first three
questions are presented in this section of the report.
Now I’m going to show you an example of a bank statement and I will ask you some
questions about it. Please look closely at this bank statement and can you tell me:
Q2a) How much did they have at the end of the month?
Q2b) Have they saved money this month?
Q2c) How much have they saved this month?
Colmar Brunton Page | 70
Bank statement – amount at end of month, any saved, amount saved
Correct: How much had at end of month
Correct: Have saved money
Correct: How much saved
90%
81%
74%
92%
82%80%
0%
20%
40%
60%
80%
100%
Base: all respondents asked Base: all respondents asked Base: all respondents aware have saved
Ngai Tahu New Zealand
Source: Q2a, Q2b, Q2c
Ngai Tahu (n=400), NZ (n=850) Ngai Tahu (n=400), NZ (n=850) Ngai Tahu (n=328), NZ (n=692)
Nine in ten (90%) Ngāi Tahu respondents correctly identified from the bank statement how much the
statement owner had at the end of the month, and eight in ten (81%) correctly identified that the
statement owner had saved money. These results are consistent with the national results.
Of the respondents who said the statement owner had saved money, a quarter (74%) correctly
stated how much had been saved. When compared to the national results (80%), this is significantly
lower.
Colmar Brunton Page | 71
Withdrawing cash
Respondents’ awareness of fees that apply to basic banking services was tested with the following
question:
Q3) John needs to take out $50 cash for the weekend and also pay for his groceries. Which
of the following ways would John pay the least in fees and costs?
Pay least in fees & costs to take out $50 cash & pay for groceries
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q3
69%
27%
1% 2%
60%
34%
2% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Correct - EFTPOS at supermarket Cash from bank teller Cheque for groceries, ATM for cash Don't know
Ngai Tahu New Zealand
Just over two thirds (69%) of Ngāi Tahu respondents correctly identified that paying by EFTPOS at
the supermarket, and taking out cash at the same time, would be the best way for John to pay the
least in fees and costs. This is significantly higher than the national average where only 60% gave
the correct answer.
Conversely, the proportion of Ngāi Tahu respondents who incorrectly thought that getting enough
cash from the bank teller to pay for the groceries and for the weekend would be the best way for
John to pay the least in fees is significantly lower than the national average (27% of Ngāi Tahu c.f.
34% of New Zealanders).
Colmar Brunton Page | 72
Advantages of Internet banking
To establish the extent to which respondents recognise the financial advantages of Internet banking,
respondents were asked:
Q5) Amanda usually does her banking over the counter at her local branch. What financial
advantages would there be if Amanda used Internet Banking instead of going into her local
branch? Any other financial advantages?
52%
35%
35%
35%
32%
28%
26%
11%
55%
43%
39%
27%
26%
16%
20%
12%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Financial advantages of using Internet banking instead of over the counter at local branch
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850). NB: Responses 10% or less not depicted. Source: Q5
(Main reasons given)
Correct - Cheaper/cost/no fees/fees lower
Quicker
Convenience
Access at home/work
24 hour access
Can do it in own time
Can see transaction details/history
Don’t know
The key financial advantage associated with Internet banking relates to cost savings (mentioned by
52% of Ngāi Tahu respondents). This is consistent with the national survey, however, Ngāi Tahu are
more likely than the national average to mention the following advantages:
� access at home/work (35% of Ngāi Tahu c.f. 27% of New Zealanders)
� 24 hour access (32% of Ngāi Tahu c.f. 26% of New Zealanders)
� can see transaction details/history (28% of Ngāi Tahu c.f. 16% of New Zealanders)
� can do it in own time (26% of Ngāi Tahu c.f. 20% of New Zealanders).
On the other hand, Ngāi Tahu are less likely than the national average to mention that Internet
banking is quicker (35% of Ngāi Tahu c.f. 43% of New Zealanders).
Colmar Brunton Page | 73
The results to this question are presented below for users of Internet banking.
65%
48%
43%
42%
39%
38%
32%
1%
72%
51%
35%
56%
22%
33%
23%
2%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Base: Internet banking users Ngai Tahu (n=220), New Zealand (n=366)Source: Q5
(Main reasons given)
Correct - Cheaper/cost/no fees/fees lower
Quicker
Convenience
Access at home/work
24 hour access
Can do it in own time
Can see transaction details/history
Don’t know
Financial advantages of using Internet banking instead of over the counter at local branch – Internet bankers
Among users of Internet banking, Ngāi Tahu are more likely than the national average to recognise
the advantages of seeing transaction details and doing banking in their own time and less likely to
recognise that Internet banking is quicker.
Colmar Brunton Page | 74
Advantages of paying bills on or before the due date
Respondents were asked:
Q6a) If Elizabeth has a telephone bill due on the 20th of the month, are there advantages in
paying the bill on or just before the day it is due?
Q6b) What advantages are there? Anything else?
The results to both these questions are presented in the following chart.
77%
20%
2%
76%
21%
3%
0% 20% 40% 60% 80% 100%
Correct - Advantage
No Advantage
Don't know
Ngai Tahu New Zealand
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q6a
54%
49%
29%
26%
14%
47%
57%
14%
20%
16%
0% 10% 20% 30% 40% 50% 60%
Qualify for discount (Correct)
Avoid overdue fee (Correct)
Peace of mind that paid
Get good credit history
Maximise interest earned (Correct)
Ngai Tahu New Zealand
Advantages in paying bill on or just before due day
(Main reasons given)
Base: Respondents who considered there is advantage Ngai Tahu (n=313), New Zealand (n=637)
Source: Q6b
Around three quarters (77%) of Ngāi Tahu respondents said there are advantages in paying the bill
on or just before the due date, which is consistent with the national results.
When compared to the national average, a significantly higher proportion of Ngāi Tahu viewed
qualifying for a discount as a benefit to paying the bill on or just before the due date (54% of Ngāi
Tahu c.f. 47% of New Zealanders), and a significantly lower proportion of Ngāi Tahu viewed avoiding
overdue fees as a benefit (49% of Ngāi Tahu c.f. 57% of New Zealanders).
Significantly higher proportions of Ngāi Tahu also viewed peace of mind and good credit history as
benefits.
Colmar Brunton Page | 75
Budgeting
Description of a budget
Respondents were asked:
Q10) Which of the following is the best description of a budget?
Best description of a budget
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q10
79%
15%
2%
4%
1%
81%
10%
5%
4%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Correct – plan for what you earn and what you spend
Knowing where all your money goes
Accounting spreadsheet
Spending as little as you can
Don’t understand
Four in five (79%) Ngāi Tahu correctly identified the best description of a budget as ‘a plan for what
you earn and what you spend’. This is consistent with the national results.
Those that have a budget are more likely than those who do not have a budget to correctly identify
the best description (86% of those with a budget c.f. 69% of those without a budget).
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, there is a significant knowledge gap between the Lowest knowledge
group and the Advanced knowledge group in regards to understanding what a budget is (31% of the
Lowest knowledge group c.f. 93% of the Advanced knowledge group). Instead, those is the Lowest
knowledge group are significantly more likely than those in the Advanced knowledge group to think
that a budget is knowing where all your money goes (41% of the Lowest knowledge group c.f. 6% of
the Advanced knowledge group) or spending as little as you can (24% of the Lowest knowledge
group c.f. 0% of the Advanced knowledge group).
Colmar Brunton Page | 76
Importance of a budget
Without prompting, all respondents were asked:
Q11) Why is it important to have a budget? Anything else?
Results to this question are presented in the following graph. The percentages in brackets refer to
the national New Zealand survey results.
Respondents could give more than one answer. Categories that are similar to each other have been
grouped together and presented as a ‘nett score’ – this figure gives the percentage of respondents
that gave at least one of the more detailed suggestions (which are listed below the nett score).
92%
79%
26%
24%
22%
56%
42%
29%
48%
40%
15%
0% 20% 40% 60% 80% 100%
Why is it important to have a budget
(Main reasons given) – all correct
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850). NB: Figures in brackets are the NZ results. Responses less than 2% not depicted.Source: Q11
To control spending/pay bills on time
Plan how much can spend & save
To keep track of where money is going
To have savings
Plan what spend money on
Achieve financial goals
Know where income is coming from
Make sure money will last
NETT PLANNING
NETT CONTROL
NETT TRACKING
(92%)
(84%)
(25%)
(15%)
(16%)
(53%)
(43%)
(23%)
(43%)
(38%)
(12%)
Nine in ten (92%) Ngāi Tahu respondents mentioned that it is important to have a budget for reasons
relating to ‘control’, over half (56%) mentioned a reason relating to planning, and just under half
(48%) mentioned a reason relating to tracking. These are all consistent with the national results.
However, when we look at the specific reasons respondents provided, some differences with the
national results are evident. When compared to the national survey, Ngāi Tahu are more likely to
mention the following reasons for why it is important to have a budget:
� to achieve financial goals (24% of Ngāi Tahu c.f. 15% of New Zealanders)
� to make sure money will last (22% of Ngāi Tahu c.f. 16% of New Zealanders)
� to plan what to spend money on (29% of Ngāi Tahu c.f. 23% of New Zealanders).
Conversely, Ngāi Tahu are less likely to mention that controlling spending/paying bills on time is a
reason for having a budget (79% of Ngāi Tahu c.f. 84% of New Zealanders).
Colmar Brunton Page | 77
Who benefits from a budget
Respondents were asked:
Q12) Which of the following best describes who can benefit from having a budget?
Who benefits from having a budget
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q12
80%
14%
5%1%
74%
20%
5%1%
0%
20%
40%
60%
80%
100%
Correct -Everyone
People who have difficulties
managing money
People without much money
People with a lot of money
Ngai Tahu New Zealand
Four in five (80%) Ngāi Tahu respondents felt that everyone can benefit from having a budget. This
is significantly higher than the national average where only 74% said everyone can benefit.
Conversely, when compared to the national average, a significantly smaller proportion of respondents
said that only people who have difficulties managing money can benefit from having a budget (14%
of Ngāi Tahu c.f. 20% of New Zealanders).
Those that have a budget are significantly more likely than those who don’t have a budget to say that
everyone can benefit (89% of those with a budged c.f. 67% of those without a budget).
Colmar Brunton Page | 78
Proportion who have a budget
Respondents were asked:
Q13) Do you have a budget?
Proportion who have a budget
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q13
60%64%
0%
20%
40%
60%
80%
100%
Ngai Tahu New Zealand
Three in five (60%) Ngāi Tahu respondents said they have a budget and this is consistent with the
national average.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the Advanced knowledge group are significantly more likely
than those in the Lowest knowledge group to have a budget (71% of the Advanced knowledge group
c.f. 50% of the Lowest knowledge group).
Similarly, those in the High knowledge group are significantly more likely than those in the Low
knowledge group to have a budget (67% of the High knowledge group c.f. 50% of the Low
knowledge group).
Colmar Brunton Page | 79
Goal setting, long term goals, financial planning
Financial goals
Respondents were asked the following questions about financial goals:
Q14a) Do you have financial goals?
Q14b) Are these goals written down?
Financial goals
79%
21%
75%
25%
0% 20% 40% 60% 80% 100%
Have financial goals
Do not have financial goals
Ngai Tahu New Zealand
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q14a
Whether have financial goals
Whether goals written down
Base: Respondents with financial goals Ngai Tahu (n=318), New Zealand (n=637)Source: Q14b
69%
31%
70%
30%
0% 20% 40% 60% 80%
Not written down
Written down
Ngai Tahu New Zealand
Four in five (79%) Ngāi Tahu respondents said that they have financial goals. Of the respondents
who have financial goals, only a third (31%) have their goals written down. Both of these results are
consistent with the national results.
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those with financial goals tend to have a higher level of financial
knowledge than those without financial goals:
� 45% of respondents with financial goals are in the High knowledge group compared to only 18% of those without financial goals
� 56% of respondents without financial goals are in the Low knowledge group compared to only 22% of those with financial goals.
Colmar Brunton Page | 80
Financial plans
Respondents were asked:
Q15) A financial plan is a written approach of the steps you plan to take to achieve your
financial goals. Do you have a financial plan that is written down?
Financial plans
76%
24%
79%
21%
0% 20% 40% 60% 80% 100%
Do not have written financial plan
Have written financial plan
Ngai Tahu New Zealand
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q15
Whether have financial plan
A quarter (24%) of Ngāi Tahu respondents have a financial plan that is written down, which is
consistent with the national results.
Colmar Brunton Page | 81
Respondents’ understanding of financial plans was tested with the following question:
Q16) I am going to read out some statements about financial plans and would like you to tell
me whether you think the statement is true, false, or whether you don’t know.
10%
9%
96%
96%
8%
4%
85%
88%
2
2
85%
93%
4%
3%
2
1
6%
2
1
0% 20% 40% 60% 80% 100%
True False Don't know Don't understand
Financial plans - statements
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q16
Ngai Tahu
New Zealand
Financial plans are set up once and you use that plan throughout your life
Financial planning is about investment only
Financial plans should take into account possible changes in your life
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Correct = False
Correct = True
Correct = False
The majority (85%) of Ngāi Tahu respondents correctly identified the following statement as false:
‘Financial plans are set up once and you use that same plan throughout your life’, while almost all
(96%) respondents correctly identified the following statement as true: ‘Financial plans should take
into account possible changes in your life’. These are consistent with the national results.
Most (85%) Ngāi Tahu respondents also correctly identified the following statement as false:
‘Financial planning is about investment only’, which is significantly lower than the national average
where 93% correctly identified the statement as false.
Colmar Brunton Page | 82
Debt management
Loan guarantees
Respondents’ understanding of the responsibility of the guarantor was tested with the following
question:
Q18) If Bob personally guarantees a loan for John, and John does not make the repayments he
is supposed to, which one of the following is Bob required to do?
a) Bob has to represent John in court
b) Bob has to take over the debt and make the repayments
c) Bob has to help to get the money from John.
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q18
82%
12%
4%
1%
83%
11%
4%
2%
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
If Bob personally guarantees loan for John & John does not make repayments …
Correct – Bob has to take over the debt and
make repayments
Bob has to get the money from John
Bob has to represent John in court
Don’t know
Four in five (82%) Ngāi Tahu respondents correctly identified that as the guarantor Bob would have
to take over the debt and make the repayments himself if John does not follow through with
repayments. This is consistent with the national results.
Colmar Brunton Page | 83
Debt management
Fastest way to pay off debt
Respondents’ understanding of the fastest way to pay off debt was tested with the following
question:
Q19) If Pete has $2,000 owing on his credit card paying 19.5% interest, and another personal
loan of $500 at 11.5% interest, which would allow him to get rid of his debt faster?
a) Repay the minimum amount on the credit card and repay the personal loan faster
b) Pay off the credit card debt faster and pay only the minimum amount on the personal
loan until the credit card debt is cleared
c) Invest any available money in a term deposit paying 7%
d) Transfer or consolidate the credit card debt into the personal loan and pay the lower
interest rate.
57%
28%
4%
2%
9%
1%
49%
35%
7%
2%
7%
1%
0% 10% 20% 30% 40% 50% 60%
Ngai Tahu
New Zealand
Correct - Transfer/consolidate credit card debt into personal loan and pay
lower interest rate
$2,000 owing on credit card paying 19.5% interest, personal loan of $500 at 11.5%, how get rid of debt faster? (Overall)
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q19
Pay off credit card debt faster and only minimum on personal loan
Repay minimum on credit card and repay personal loan faster
Invest available money in 7% term deposit
Don’t know
Don’t understand
The proportion of Ngāi Tahu respondents who correctly identified that Pete should consolidate his
credit card debt into the personal loan thereby paying the lower interest rate is significantly higher
than the national average (57% of Ngāi Tahu c.f. 49% of New Zealanders). Conversely, the
proportions who incorrectly said that Pete should pay off his credit card faster and pay only the
minimum amount on his personal loan or that he should repay the minimum amount on the credit
card and repay the personal loan faster are significantly lower than the national average (28% of
Ngāi Tahu c.f. 35% of New Zealanders and 4% of Ngāi Tahu c.f. 7% of New Zealanders
respectively).
Colmar Brunton Page | 84
As the next chart illustrates, respondents who have a personal loan or a mortgage are more likely to
give the correct answer, compared to those who do not have a personal loan or a mortgage.
However, there are no significant differences between these proportions and the national results.
$2,000 owing on credit card paying 19.5% interest, personal loan of
$500 at 11.5%, how get rid of debt faster?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q19
Correct – Consolidate the Debt
57%
49%
0%
20%
40%
60%
80%
100%
All respondents
Ngai Tahu New Zealand
Correct – Consolidate the Debt
65%
59%
0%
20%
40%
60%
80%
100%
Have personal loan or home mortgage
Ngai Tahu New Zealand
Base: Have personal loan or home mortgage Ngai Tahu (n=190), New Zealand (n=314)Source: Q19
Colmar Brunton Page | 85
Paying off debt first
Respondents’ understanding of the importance of paying off debt first was tested with the next
question:
Q30) Robyn has inherited $7,000. She has a home loan of $100,000 and has an emergency
fund of $5,000. Her friend says she should invest the $7,000 in a term deposit. Would you
recommend that she pays more off her home loan, or invests the $7,000 inheritance in a
term deposit?
Inherited $7,000. Home loan of $100,000. Emergency fund of $5,000. Friend recommends investing $7,000 in term deposit
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q30
70%
25%
4%
1%
68%
25%
5%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Ngai Tahu
New Zealand
Correct - Should pay more off home loan
Should invest in term deposit
Don’t know
Don’t understand
Seven in ten (70%) Ngāi Tahu respondents correctly understood that Robyn should pay more off her
home loan, which is consistent with the national results and does not vary significantly between those
with a home mortgage and those without.
Colmar Brunton Page | 86
Home loans/mortgages
Minimising interest
To measure respondents’ understanding of how to minimise interest on a mortgage, they were
asked:
Q20) A home loan is what people usually call a mortgage, it is the money that is borrowed to
pay for a house. I am going to read out some statements about minimising the amount of
interest you pay on a home loan and would like you to tell me whether you think the
statement is true, false, or whether you don’t know.
First, if you wanted to minimise the amount of interest you pay on your home loan you could
(…). Is that true or false, or do you not know?
To minimise the interest…
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q20
51%
53%
91%
87%
4%
5%
32%
30%
3
6%
83%
83%
15%
16%
5%
6%
11%
11%
1
1
1
1
1
1
1
0% 20% 40% 60% 80% 100%
True False Don't know Don't understand Missing information
Ngai Tahu
New Zealand
Pay half your monthly payment every fortnight
Put some payments on credit card and pay it off every six months
Increase amount of regular payments
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Correct = True
Correct = True
Correct = False
Colmar Brunton Page | 87
‘Pay half your monthly payment every fortnight’
Just over half (51%) of Ngāi Tahu respondents correctly chose ‘true’ for the first statement, that to
minimise interest on your home loan you should pay half your monthly payment every fortnight. This
is consistent with the national results.
‘Increase the amount of your regular payments’
Nine in ten (91%) Ngāi Tahu respondents correctly said that increasing the amount of regular
payments is true, which is significantly higher than the national average (87%). Conversely,
significantly fewer respondents said it was false (3% of Ngāi Tahu c.f. 6% of New Zealanders).
‘Put some of your payments on your credit card and pay it off every six months’
Around four in five (83%) Ngāi Tahu respondents correctly chose ‘false’ for the statement, that to
minimise interest on your home loan you should put some payments on credit card and pay it off
every six months. This is consistent with the national results.
Colmar Brunton Page | 88
The next chart details levels of understanding of how to minimise interest on a mortgage among
those who have a mortgage and those who don’t.
To minimise the interest…
Base: Varies by whether have mortgage‘Source: Q20
58%
68%
49%
47%
95%
94%
89%
85%
3
2
4%
6%
36%
25%
30%
32%
4
3
3
7%
90%
93%
80%
80%
6%
7%
20%
20%
3
7%
8%
6%
5%
14%
14%
1
1
1
1
1
1
1
1
0% 20% 40% 60% 80% 100%
True False Don't know Don't understand Missing information
Have Home Mortgage
Pay half your monthly payment every fortnight
Increase amount of regular payments
Put some payments on credit card and pay it off every 6 months
Do not have Home Mortgage
Have Home Mortgage
Do not have Home Mortgage
Have Home Mortgage
Do not have Home Mortgage
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Correct = True
Correct = True
Correct = False
While respondents with a mortgage do have greater knowledge than those without a mortgage of
how to minimise interest, the gap between these two groups is slightly smaller for Ngāi Tahu than for
New Zealand (for all three statements).
Correct understanding of how to minimise interest, regardless of whether or not respondents have a
home mortgage, is consistent with results from the national survey. However, the average Ngāi Tahu
respondent with a mortgage is more likely than the average New Zealander with a mortgage to
incorrectly think that interest will not be minimised if they pay half their monthly payments every
fortnight (36% of Ngāi Tahu with a mortgage c.f. 25% of New Zealanders with a mortgage).
On the other hand, the average Ngāi Tahu respondent without a mortgage is less likely than the
average New Zealander without a mortgage to incorrectly think that interest will not be minimised if
regular payments are increased (3% of Ngāi Tahu without a mortgage c.f. 7% of New Zealanders
without a mortgage).
Colmar Brunton Page | 89
Equity and leverage
To test respondents’ understanding of equity and leverage, respondents were asked:
Q22) Mike owns a house worth $275,000 and has a home loan of $125,000. If Mike wants to
buy an investment property, but doesn’t have the money for the deposit, which is the most
likely way for him to get the finance for the property at the lowest interest rate?
a) Take out an unsecured loan for a deposit
b) Borrow from a financier who will lend him 100% of the value of the house, using the
investment property as security
c) Borrow against the value in his existing property.
77%
9%
5%
9%
1%
77%
13%
2%
7%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Ngai Tahu
New Zealand
Correct - Borrow against value in existing property
Borrow 100% using investment property as security
Take out unsecured loan for deposit
Don’t know
Don’t understand
To buy an investment property without deposit, most likely way to get finance at lowest interest rate
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q22
Correct identification among Ngāi Tahu respondents (77%) that Mike should borrow against the value
in his existing property is consistent with the national results.
When compared to the national average, significantly fewer Ngāi Tahu respondents said that Mike
should borrow 100% using investment property as security (9% of Ngāi Tahu c.f. 13% of New
Zealanders), while significantly more Ngāi Tahu respondents said that Mike should take out an
unsecured loan for a deposit (5% of Ngāi Tahu c.f. 2% of New Zealanders).
Colmar Brunton Page | 90
Fixed interest rates
To test respondents’ understanding of the circumstances in which a fixed interest rate is preferable,
the following question was asked:
Q23) In which of the following situations would it be better to have a two year fixed interest
rate home loan rather than a variable or floating rate home loan?
a) When your bank comes out with a better fixed interest rate than the other banks
b) When interest rates are expected to increase over the next 2 years
c) When interest rates are expected to fall over the next 2 years
d) When the value of your house is going to increase over the next 2 years
Better to have 2 year fixed interest rate home loan rather than variable or floating rate
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q23
70%
10%
7%
5%
7%
1%
63%
11%
8%
6%
10%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Ngai Tahu
New Zealand
Correct – when interest rates are expected to increase over the next 2
years
When your bank has a better fixed rate than other banks
When the value of your house is going to increase over the next 2 years
When interest rates are expected to fall over the next 2 years
Don’t know
Don’t understand
Seven in ten (70%) Ngāi Tahu respondents correctly said that it would be better to have a two year
fixed rate when interest rates are expected to increase over the next two years. This is significantly
higher than the national average (63%).
The next chart shows a comparison between the proportion who gave the correct answer among
those who have a mortgage on their own home and those who don’t.
Colmar Brunton Page | 91
Base: Varies by whether or not have mortgage on own homeSource: Q23
Better to have 2 year fixed interest rate home loan rather than variable or floating rate – correct answer
82%
64%
79%
62%
0%
20%
40%
60%
80%
100%
Have mortgage on own home Don't have mortgage on own home
Ngai Tahu New Zealand
Of the Ngāi Tahu respondents with a mortgage on their own home, 82% had a correct understanding
that it would be better to have a two year fixed rate when interest rates are expected to increase
over the next two years; compared to those who don’t have a mortgage where 64% had correct
understanding. These results are consistent with the national results.
Colmar Brunton Page | 92
Fixed, floating and variable home loans
Respondents’ understanding of fixed, floating and variable interest rates was tested with the following
question:
Q24) I am now going to read out some statements about different types of home loans and
would like you to tell me whether you think the statement is true, false, or whether you don’t
know.
With a fixed rate home loan, the interest rate remains the same for the term of the loan
With a variable or floating rate home loan, you can repay in part or in full at any time
without penalty
With a revolving credit facility loan, you are charged a penalty for making an early
repayment.
The results are presented in the next two charts. The first chart provides results based on the total
sample. The second chart analyses the results by those with and without a mortgage.
80%
80%
54%
46%
26%
21%
14%
10%
21%
24%
28%
34%
5
9%
24%
29%
44%
44%
1
1
1
1
1
0% 20% 40% 60% 80% 100%
True False Don't know Don't understand
Ngai Tahu
New Zealand
Statements about home loan interest rates
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q24
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Fixed rate home loan, the interest rate remains the same for term of the loan
Variable or floating rate home loan, can repay part or in full without penalty
Revolving credit facility loan, charged penalty for early repayment
Correct = True
Correct = True
Correct = False
Colmar Brunton Page | 93
87%
87%
78%
77%
68%
65%
48%
40%
31%
16%
26%
21%
13%
9%
13%
11%
20%
19%
22%
26%
58%
72%
26%
31%
3
8%
12%
12%
16%
30%
33%
11%
11%
47%
47%
1
1
1
1
1
0% 20% 40% 60% 80% 100%
True False Don't know Don't understand
Have Home Mortgage
Fixed rate home loan, the interest rate remains the same for term of the loan
Variable or floating rate home loan, can repay part or in full without penalty
Revolving credit facility loan, charged penalty for early repayment
Do not have Home Mortgage
Have Home Mortgage
Do not have Home Mortgage
Have Revolving Credit
Do not have Revolving Credit
Base: Varies by product ownershipSource Q24
Statements about home loan interest rates
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Correct = True
Correct = True
Correct = False
‘With a fixed rate home loan the interest rate remains the same for the term of the loan.’
As with the national results, 80% of Ngāi Tahu respondents correctly said that this statement is true.
However, significantly more Ngāi Tahu respondents said this statement is false (14% of Ngāi Tahu
c.f. 10% of New Zealanders) and this results from significantly fewer Ngāi Tahu respondents who
were unsure (5% of Ngāi Tahu c.f. 9% of New Zealanders).
When comparisons are made between the average Ngāi Tahu respondent with a mortgage and those
without a mortgage, those with a mortgage are more likely to answer this question correctly (87% of
Ngāi Tahu with a mortgage c.f. 78% of Ngāi Tahu without a mortgage).
‘With a variable or floating rate home loan you can repay in part or in full at any time without
penalty.’
Just over half (54%) of Ngāi Tahu respondents correctly recognised that you can repay part of a variable or
floating rate home loan without penalty, which is significantly higher than the national average (46%).
As with the previous statements, when comparisons are made between the average Ngāi Tahu respondent
with a mortgage and those without a mortgage, those with a mortgage are more likely to answer this
question correctly (68% of Ngāi Tahu with a mortgage c.f. 48% of Ngāi Tahu without a mortgage).
The average Ngāi Tahu respondent without a mortgage is more likely than the average New Zealander
without a mortgage to answer this question correctly (48% of Ngāi Tahu without a mortgage c.f. 40% of
New Zealanders without a mortgage).
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‘With a revolving credit facility loan you are charged a penalty for making an early repayment.’
Only 28% of Ngāi Tahu respondents correctly identified that this statement was false, which is significantly
lower than the national average (34%).
As expected, the average Ngāi Tahu respondent with a revolving credit loan is more likely than those
without one, to answer this question correctly (58% of Ngāi Tahu with revolving credit c.f. 26% of Ngāi
Tahu without revolving credit).
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Managing risk
Life insurance
Respondents were asked a series of questions relating to insurance and managing financial risk.
Q25) If each of the following people had the same amount of yearly income, who would need
the greatest amount of life insurance?
a) A young single woman without children
b) A young single woman with two children
c) A young married woman without children
Who needs the greatest amount of life insurance
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q25
87%
7%
2%
4%
1%
93%
4%
2%
1%
0% 20% 40% 60% 80% 100%
Ngai Tahu New Zealand
Young married woman with no children
Young single woman, no children
Correct – young single woman, two children
Don’t understand
Don’t know
While a large majority (87%) of Ngāi Tahu respondents correctly identified that a young single
woman with two children needed the greatest amount of life insurance, this is significantly lower than
the national average (93%).
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Entitlement to share of house when two people separate
Respondents were asked:
Q26) David moved into Jane’s house four years ago. They have now decided to separate. Is
David entitled to a share of Jane’s house?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q26
84%
10%
6%
78%
16%
5%
0% 20% 40% 60% 80% 100%
Ngai Tahu New Zealand
No
Don’t know
Correct – Yes
David moved into Jane’s house 4 years ago. Is David entitled to a share of Jane’s house now they are separating?
Most (84%) Ngāi Tahu respondents correctly answered that David was entitled to a share of Jane’s
house. When compared to the national results (78%), this is significantly higher.
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Saving
Compound interest on savings account
Respondents’ understanding of compound interest was tested with the following question:
Q28a) Ben and Sarah are the same age and both put their money into a savings account
earning interest. Sarah started saving when she was 20 and saved $2,500 each year. Ben
started saving when he was 40 and saved $5,000 each year. They are now both 60. Do Ben
and Sarah have the same amount of money saved, or does one have more than the other?
If one has more:
Q28b) Who has more money?
Q28c) Why do they have more money?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q28a, Q28b
28%
5%
61%
4%2%
37%
6%
50%
5%
1%
0%
10%
20%
30%
40%
50%
60%
70%
Ngai Tahu
New Zealand
Sarah saved from 20 years of age $2,500 each year. Ben saved from 40 years of age $5,000 each year. Now both 60.
Correct -Sarah has more than
Ben
Ben has more than Sarah
Same amount
Don’t know Don’t understand question
Three in ten (28%) Ngāi Tahu respondents correctly identified that Sarah would have saved more
money than Ben which is significantly lower than the national average (37%).
Conversely, significantly more Ngāi Tahu respondents incorrectly thought Ben and Sarah would have
saved the same amount (61% of Ngāi Tahu c.f. 50% of New Zealanders).
Reason why Sarah would have more
Of those who correctly identified that Sarah would have more, 93% of Ngāi Tahu respondents gave
the correct reason for this (because her money has grown in her savings account for a longer time
earning compound interest).
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Full knowledge of compound interest
Of all Ngāi Tahu respondents, 26% correctly identified that Sarah would have saved more and that it
was because her money had been in a savings account for longer (earning compound interest). This
is significantly lower than the national average (35%).
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Compound interest on term deposit
To further test respondents’ understanding of compound interest, the following question was asked:
Q31) Which of the following term deposits would pay the most interest in total, or would they
pay the same amount of interest?
a) 1 year term deposit at 7% interest per annum paid at maturity
b) 1 year term deposit at 7% interest per annum paid quarterly back into the term
deposit
c) They would pay the same amount of interest
Term deposit paying most interest in total
Base: See column headingsSource: Q31, Q95
Ngai Tahu New Zealand
Total (n=400)
%
Have term deposit
(n=88)
%
Don’t have term deposit
(n=296)
%
Total (n=850)
%
Have term deposit
(n=241)
%
Don’t have term deposit
(n=605)
%
Correct – 1 year, 7% interest paid back into term deposit
43 59 39 58 70 53
Pay the same amount 32 25 35 20 16 21
1 year, 7% interest paid at maturity
10 8 10 7 5 8
Don’t know 13 8 14 13 8 15
Don’t understand 2 - 2 2 1 2
Four in ten (43%) Ngāi Tahu respondents demonstrated knowledge of compound interest when they
correctly chose the option of ‘a one year term deposit at 7% interest per annum paid quarterly back
into the term deposit’. This is significantly lower than the national average (58%). This is particularly
low among those that do not have a term deposit.
When compared to the national average, significantly more respondents incorrectly thought that the
term deposits would pay the same amount of interest (32% of Ngāi Tahu c.f. 20% of New
Zealanders). This is particularly high among those who do not have a term deposit.
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Inflation
Respondents’ understanding of inflation was tested with the following question:
Q29a) If John currently has an income of $30,000, how much income will he need in five years’
time to be able to live at the same standard?
a) $30,000
b) Less than $30,000
c) More than $30,000
Q29b) Why does he need more than $30,000?
87%
8%
1%
2%
1%
89%
3%
3%
5%
0% 20% 40% 60% 80% 100%
Ngai Tahu New Zealand
Income of $30,000. How much income needed in 5 years’ time to be able to live at the same standard?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q29a
$30,000
Don’t know
Correct - More than $30,000
Less than $30,000
Why more than $30,000?
Ngai Tahu
New Zealand
Inflation/ increased cost/ price 93% 94%
Value of money changes 12% 14%
Other 5% 4%
Don’t know 1% 2%
Base: Respondents who stated more than $30,000 is required from Ngai Tahu (n=350), New Zealand (n=751)
Source: Q29b
Don’t understand
Most (87%) Ngāi Tahu respondents correctly identified that John would need more than $30,000 in
five years’ time to be able to live at the same standard, which is consistent with the national results.
Of the Ngāi Tahu respondents who correctly identified that John would need more, 93% attributed
the reason to inflation and 12% commented that the value of money changes over time.
Colmar Brunton Page | 101
Interest accrual
The following question tested knowledge of interest accrual:
Q32) If Nicky had $100 in a savings account and the interest rate was 2% per year, after 5
years how much would Nicky have in her account if she left the money to grow? Would it be
more than $102, exactly $102 or less than $102?
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q32
85%
6%
5%
3%
86%
6%
4%
4%
0% 20% 40% 60% 80% 100%
Ngai Tahu New Zealand
$102
Don’t know
Correct - More than $102
$100 in savings account, 2% interest per year. After 5 years how much in account if left money to grow?
Less than $102
The majority (85%) of Ngāi Tahu respondents correctly understood the concept of interest accrual.
This is consistent with the national results.
Colmar Brunton Page | 102
Effects of inflation on savings
Respondents were asked:
Q33) If the interest rate on Anne’s savings account was 1% per year and inflation was 2% per
year, after 1 year, would she be able to buy more than, exactly the same as, or less than
today with the money in this account?
76%
7%
11%
1%
6%
81%
7%
7%
1%
5%
0% 20% 40% 60% 80% 100%
Ngai Tahu New Zealand
Interest rate 1%, inflation 2%. After 1 year, buy more than, less than or exactly the same as today?
Base: All respondents Ngai Tahu (n=400) New Zealand (n=850)Source: Q33
Exactly the same
Don’t know
Correct - Less than
Don’t understand
More than
When compared to the national results, a significantly smaller proportion of Ngāi Tahu respondents
demonstrated knowledge of the effects of inflation on savings by correctly identifying that Anne
would be able to buy less than today with the money in her account (76% of Ngāi Tahu c.f. 81% of
New Zealanders). Conversely, a significantly larger proportion of Ngāi Tahu respondents incorrectly
stated that Anne would be able to buy more than today (11% of Ngāi Tahu c.f. 7% of New
Zealanders).
Colmar Brunton Page | 103
Retirement planning
When reading this section on retirement planning it is important to take into account that the national
New Zealand survey had a relatively higher proportion of younger respondents when compared to the
Ngāi Tahu survey. The table below profiles the respondents from each survey by age group.
Age group Ngāi Tahu
(n=400)
New Zealand
(n=850)
18-34 years 18% 30%
35-44 years 23% 21%
45-54 years 24% 18%
55-64 years 17% 14%
65+ 16% 17%
Extent to which people think about financial planning for retirement
Respondents were asked:
Q34) To what extent have you thought about your financial planning for your retirement?
29%
27%
20%
29%
34%
27%
16%
17%
1%
0% 20% 40% 60% 80% 100%
A lot A fair amount A little Not at all Don't know
Extent thought about financial planning for retirement
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q34
Ngai Tahu
New Zealand
Half (49%) of the Ngāi Tahu respondents said that they think about their financial planning for
retirement either ‘a lot’ or ‘a fair amount’. This is significantly less than the national results (56%)
and is driven by a significantly smaller proportion of Ngāi Tahu respondents who said they think
about their financial planning for retirement ‘a fair amount’, and a significantly larger proportion of
respondents who said they think about retirement ‘a little’.
Colmar Brunton Page | 104
Analysis by knowledge group (among Ngāi Tahu respondents)
Among Ngāi Tahu respondents, those in the High knowledge group are more likely to have thought
about financial planning for retirement either ‘a lot’ or ‘a fair amount’ (60% of the High knowledge
group said this compared to 47% of the Medium knowledge group and 37% of the Low knowledge
group).
Respondents in the Low knowledge group are more likely to say they don’t think about their financial
planning for retirement at all (31% of the Low knowledge group compared to 13% of the Medium
knowledge group and 6% of the High knowledge group).
Extent to which people think about financial planning for retirement by age
The next chart looks at the extent to which the average Ngāi Tahu respondent thinks about their
financial planning for retirement by age group.
8%13%
34%
49% 51%
11%
23% 27%
20%13%
48%
50%
29%25%
9%
32%
14%
9%
3%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-34 years 35-44 years 45-54 years 55-64 years 65+
A lot Fair amount A little Not at all Dont know
Extent thought about financial planning for retirement by age
Base: Varies by age groupSource: Q34, Q75
As expected, the closer people get to the age of retirement, the more they tend to think about
financial planning for retirement.
Colmar Brunton Page | 105
Factors to consider in saving for retirement
Without prompting, respondents were asked:
Q35) What are all the things a person needs to consider when they think about saving for
retirement? Anything else?
Respondents could give more than one answer. Categories that are similar to each other have been
grouped together and presented as a ‘nett score’ – this figure gives the percentage of respondents
that gave at least one of the more detailed suggestions (which are listed below the nett score).
83%
41%
40%
31%
21%
19%
19%
14%
55%
28%
24%
19%
13%
47%
22%
15%
12%
11%
33%
20%
18%
0% 20% 40% 60% 80% 100%
Things to consider when thinking about saving for retirement
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850), NB: Figures in brackets are NZ results. Responses less than 10% not depicted.Source: Q35
NETT RETIREMENT SPENDING/LIFESTYLE
NETT CURRENT FINANCIAL SITUATION
NETT RETIREMENT INCOME
NETT LENGTH OF RETIREMENT
(Main reasons given) – all correct
How much will need in retirement
Retirement spending/ lifestyle
Costs will have when retired
Whether own own home
Health/ Life insurance
Where want to live
Whether paying off debt in retirement
How much can afford to save
How long before they retire
Pay off mortgage
How much have already saved
How much will you earn from investments
How much money will have in retirement
Amount saved when they retire
How long will they live for
Life expectancy
(75%)
(49%)
(26%)
(20%)
(19%)
(10%)
(14%)
(10%)
(58%)
(28%)
(22%)
(21%)
(19%)
(44%)
(20%)
(18%)
(10%)
(24%)
(18%)
(10%)
(10%)How much Govt Super will receive
The most common factors (nett) taken into account when thinking about saving for retirement were
related to their spending/lifestyle (83%), their current financial situation (55%), and their retirement
income (47%).
When compared to the national average, the following factors (nett) were mentioned significantly
more frequently among Ngāi Tahu:
� spending/lifestyle (83% of Ngāi Tahu c.f. 75% of New Zealanders)
� length of retirement (33% of Ngāi Tahu c.f. 24% of New Zealanders).
When looking at the specific factors respondents take into account when thinking about saving for
retirement, the following were mentioned significantly more frequently among Ngāi Tahu than the
national average:
� retirement spending/lifestyle (41% of Ngāi Tahu c.f. 26% of New Zealanders)
� how much you needed in retirement (40% of Ngāi Tahu c.f. 49% of New Zealanders)
� costs you will have when retired (31% of Ngāi Tahu c.f. 20% of New Zealanders)
� health/life insurance (19% of Ngāi Tahu c.f. 10% of New Zealanders)
Colmar Brunton Page | 106
� where you want to live (19% of Ngāi Tahu c.f. 14% of New Zealanders)
� whether paying off debt in retirement (14% of Ngāi Tahu c.f. 10% of New Zealanders)
� how much Government Superannuation you will receive (15% of Ngāi Tahu c.f. 10% of New Zealanders)
� life expectancy (20% of Ngāi Tahu c.f. 10% of New Zealanders).
The following were mentioned significantly less frequently among Ngāi Tahu than the national
average:
� how much you have already saved (13% of Ngāi Tahu c.f. 19% of New Zealanders)
� how much you will earn from investments (12% of Ngāi Tahu c.f. 20% of New Zealanders).
Colmar Brunton Page | 107
New Zealand Superannuation
To test respondents’ understanding of the eligibility criteria for New Zealand Superannuation,
respondents were first asked:
And now thinking about New Zealand Superannuation, which is often called NZ Super, which
is the pension the government provides…
Q36) At what age are people entitled to NZ Super?
Age entitled to NZ Superannuation
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q36
85%
5%
5%
4%
84%
5%
2%
9%
0% 20% 40% 60% 80% 100%
Correct - 65 years
60 years
Other
Don't know
Ngai Tahu
New Zealand
Most (85%) Ngāi Tahu respondents knew that the age of entitlement for NZ Superannuation is 65.
This is consistent with the national results.
Colmar Brunton Page | 108
The next chart displays correct knowledge by age group. As expected correct knowledge increases
as age increases.
71%
79%
94% 94% 93%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-34 years 35-44 years 45-54 years 55-64 years 65+
60 65 Other Dont know
Age entitled to NZ Super
Base: Varies by age groupSource: Q36, Q75
Colmar Brunton Page | 109
New Zealand Superannuation amount
Respondents were asked:
Q37) Do you know which of these amounts is closest to the after-tax amount of NZ Super for a
single person living alone?
Respondents were prompted with possible amounts. The amounts shown in the Ngāi Tahu and New
Zealand national survey are shown below.
Per year Per week
a) $7,800 $150
b) $15,500 $300
c) $20,200 $390
d) $23,400 $450
Amount closest to after-tax amount of NZ Super for single person living alone
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q37
27%
35%
8%
3%
26%
1%
Ngai Tahu New Zealand
22%
31%
8%
3%
36%
$7,800
$15,500(Correct)
$20,200
$23,400
Don’t know$7,800
$15,500(Correct)
$20,200
$23,400
Don’t know
Don’t understand
Just over a third (35%) of Ngāi Tahu respondents correctly identified that $15,500 is the amount
closest to the after-tax amount of New Zealand Superannuation, which is consistent with the national
results. However, significantly fewer respondents were unsure of the answer (26% of Ngāi Tahu c.f.
36% of New Zealanders).
The next chart displays Ngāi Tahu respondents’ perceptions of the amount by age group. Again,
correct knowledge (the light green line) tends to increase with age.
Colmar Brunton Page | 110
32%
30%
33%
38%
48%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-34 years 35-44 years 45-54 years 55-64 years 65+
$7,800 per year % $15,500 per year % $20,200 per year %
$23,400 per year % Dont understand % Dont know %
Amount closest to after-tax amount of NZ Super for single person living alone
Base: Varies by age groupSource: Q37 and Q75
Colmar Brunton Page | 111
Income testing and asset testing
Respondents were asked two further questions to test their understanding of New Zealand
Superannuation eligibility criteria:
Q38) This next question is also about NZ Super. It is not about government pensions from
other countries. As far as you know, is NZ Super income tested?
Q39) Is NZ Super asset tested?
30%
28%
23%
20%
54%
44%
56%
50%
16%
27%
21%
29%
1
1
1
1
0% 20% 40% 60% 80% 100%
Yes No Don't know Don't understand
NZ Superannuation testing
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q38 and Q39
Ngai Tahu
Is NZ Super income tested?
Is NZ Super asset tested?
New Zealand
Ngai Tahu
New Zealand
Correct = No
Correct = No
Just over half (54%) of Ngāi Tahu respondents had correct knowledge that New Zealand
Superannuation is not income tested. This is significantly higher than the national average (44%)
and has been drawn from a comparatively smaller proportion of respondents who said ‘don’t know’.
Similarly, more than half (56%) of Ngāi Tahu respondents had correct knowledge that New Zealand
Superannuation is not asset tested. Again, this is significantly higher than the national average
(50%) and has been drawn from a comparatively smaller proportion of Ngāi Tahu respondents who
said ‘don’t know’.
The differences in age profile between the Ngāi Tahu survey and the national New Zealand survey
may help to explain why Ngāi Tahu respondents are more knowledgeable about New Zealand
Superannuation.
As illustrated in the following two charts, knowledge of New Zealand Superannuation not being
income tests, and not being asset tested, increases with age.
Colmar Brunton Page | 112
33%
43%
56%
64%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-34 years 35-44 years 45-54 years 55-64 years 65+
Knowledge of NZ Super not being income tested by age
Base: Varies by age group Source: Q38 and Q75
36%
42%
61%
73%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-34 years 35-44 years 45-54 years 55-64 years 65+
Knowledge of NZ Super not being asset tested by age
Base: Varies by age group Source: Q39 and Q75
Colmar Brunton Page | 113
Investing
Risk and return
To test respondents’ knowledge of the risk and return associated with investments, the following
questions were asked:
Now there are some questions about savings and investments. Please tell me whether you
think the following statements are true or false.
Q40a) An investment with a higher than average return is likely to have higher than average
risk.
Q40b) Even with good share investments, in the short term the value can usually be
expected to go up and down.
90%
88%
88%
90%
4%
6%
5%
3%
6%
5%
6%
6%
1
1
0% 20% 40% 60% 80% 100%
True False Don't know Don't understand
Ngai Tahu
New Zealand
An investment with a higher than average return is likely to have a higher than average risk
Even with good share investments, in the short term the value can usually be expected to go up and down
Statements about savings & investments
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q40a
Ngai Tahu
New Zealand
Correct = True
Correct = True
Most (90%) Ngāi Tahu respondents knew that an investment with a higher than average return is
likely to have a higher than average risk. This is consistent with the national results.
Likewise, most (88%) respondents also knew that even with good share investments, in the short
term the value can usually be expected to go up and down. Again this is consistent with the national
results.
Colmar Brunton Page | 114
Risk of return well above market rates
Respondents were also asked:
Q41) Which one of the following would you recommend to someone who was considering
investing in an investment advertised as having a return well above market rates?
a) Consider it “too good to be true” and recommended they not invest
b) Recommend they invest lightly and see how it goes before investing more heavily
c) Recommend they invest heavily to maximise their return
Which would recommend to someone considering investing in investment advertised as having a return well above market rates
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q41
51%
42%
3% 3%
46% 46%
3% 4%1%
0%
20%
40%
60%
Correct - Too good to be
true
Invest lightly Invest heavily Don't know Don't understand
Ngai Tahu New Zealand
Half (51%) of Ngāi Tahu respondents stated that they would regard an investment advertised as
having a return well above market rates as being ‘too good to be true’, while two in five (42%) said
that they would recommend proceeding with caution by initially investing lightly. This is consistent
with the national results.
Colmar Brunton Page | 115
Best return
Respondents were asked:
Q42) Which of the following is generally considered to make you the most money over the
next 15 to 20 years?
a) A savings account
b) A range of shares
c) A range of fixed interest investments
d) A cheque account
Which is generally considered to make most money over next 15 to 20 years
Base: All respondents Ngai Tahu (n=400), New Zealand(n=850)Source: Q42
38%
30% 29%
1%
49%
27%
22%
0%
20%
40%
60%
Fixed interest investments
Range of shares Savings account Cheque account
Ngai Tahu New Zealand
Just under a third (30%) of Ngāi Tahu respondents correctly said that ‘a range of shares’ is generally
considered to make the most money over the next 15 to 20 years, which is consistent with the
national results. However, when compared to the national results, a significantly smaller proportion
regarded ‘a fixed interest investment’ to make the most money (38% of Ngāi Tahu c.f. 49% of New
Zealanders), while significantly larger proportions considered ‘a savings account’ (29% of Ngāi Tahu
c.f. 22% of New Zealanders) and ‘a cheque account’ (1% of Ngāi Tahu c.f. 0% of New Zealanders) to
make the most money.
Colmar Brunton Page | 116
Factors to consider with investment offers
Respondents were asked:
Q43) John Brown has saved $10,000 and he wants to invest it to make it grow. What things
should he take into account when he is looking at investment offers?
Respondents could give more than one answer. Categories that are similar to each other have been
grouped together and presented as a ‘nett score’ – this figure gives the percentage of respondents
that gave at least one of the more detailed suggestions (which are listed below the nett score).
73%
46%
35%
25%
14%
8%
7%
64%
53%
19%
27%
24%
8%
26%
21%
9%
22%
18%
7%
0% 20% 40% 60% 80% 100%
$10,000 to invest – what take into account when looking at investment offers
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850) NB: Figures in brackets are the NZ results. Responses less than 5% not depicted. Source: Q43
NETT RETURN
NETT DURATION
NETT LIQUIDITY
NETT COST
(Main reasons given) – all correct
Level of risk/spreading investments
How long want to invest for
How quickly get money back/liquidity
Organisation offering investment
When need savings
Secured or unsecured
Minimum investment period
Capacity/ability to take risk
NETT RISK (73%)
(49%)
(12%)
(9%)
(61%)
(57%)
(29%)
(29%)
(5%)
(23%)
(27%)
More information
Capital guaranteed
(27%)
(30%)
(8%)
Interest rate/tax on interest/return
Investigate options/look around
(18%)
(11%)
Fees
If minimum investment amount
(22%)
(8%)
(13%)
The most common factors (nett) taken into account when looking at investment offers are the risk
(73%) and the return (64%) of the investment, which is consistent with the national results.
When looking at the specific factors taken into account when looking at investment offers, the
following were mentioned significantly more frequently among Ngāi Tahu when compared to the
national average:
� the organisation offering the investment (35% of Ngāi Tahu c.f. 27% of New Zealanders)
� investigate options/look around (19% of Ngāi Tahu c.f. 13% of New Zealanders).
Colmar Brunton Page | 117
Reducing risk
To test respondents’ understanding of how to reduce risk, the following question was asked:
Q44) Some people want to reduce the risk with their investments. I am now going to read out
some statements about reducing risk and would like you to tell me whether you think the
statement is true, false, or whether you don’t know. First if someone wanted to reduce the
risk with an investment they could (…). Is that true or false, or do you not know?
a) Take out capital guaranteed investments
b) Diversify their investment portfolio and have a variety of investments
c) Invest only in property
d) Change from high risk to low risk investments.
46%
49%
66%
74%
25%
15%
82%
79%
6%
8%
8%
7%
59%
70%
6%
7%
45%
40%
22%
18%
14%
14%
10%
13%
3
2
3
2
2
1
11
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
True False Don't know Don't understand Missing information
If wanted to reduce risk with an investment
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q44
Take out capital guaranteed investments
Diversify investment portfolio and have variety of investments
Invest only in property
Change from high risk to low risk investments
Correct = True
Correct = True
Correct = False
Correct = True
Understanding that to reduce risks with an investment, they could take out capital guaranteed
investments is consistent with the national results at 46%. Similarly, understanding that they could
change from high risk to low risk investments is also consistent with the national results at 82%.
However, only two thirds (66%) of Ngāi Tahu respondents understood that diversifying an investment
portfolio and having a greater variety of investments is a way to reduce risk. This is significantly
lower than the national average (74%). Similarly, only 59% of Ngāi Tahu respondents understood
that investing only in property will not reduce risk, which is significantly lower compared to the
national average of 70%.
Colmar Brunton Page | 118
Warning signs of a scam
Respondents were asked:
Q45) Which of the following aspects about an investment would make you think that it might
be a scam?
a) ‘Promise of very high returns with little risk’
b) Being told the offer is only being made to a select few people
c) Being offered by a well known reputable financial organisation
d) The minimum amount they say you have to invest keeps reducing.
92%
88%
92%
91%
11%
13%
62%
74%
5%
7%
4%
5%
80%
81%
20%
12%
3
5%
3
3
8%
6%
17%
13%
1
1
1
1
1
1
1
1
1
0% 20% 40% 60% 80% 100%
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
True False Don't know Don't understand Missing information
Aspects of investment that might make it a scam
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q45
Promise of very high returns with little risk
Offer only being made to a select few people
Minimum amount to invest keeps reducing
Offered by a well known, reputable financial organisation
Correct = True
Correct = True
Correct = False
Correct = True
Most (92%) Ngāi Tahu respondents understood that the promise of a very high return with little risk
is probably a scam. This is significantly higher than the national average (88%).
The same proportion of respondents (92%) also understood that an offer only being made to a
selected few people is probably a scam, while four in five (80%) respondents understood that an
investment offer from a reputable financial organisation is probably not a scam. Both are consistent
with the national results.
Only 62% of respondents understood that an investment offer where the minimum amount to invest
keeps reducing is probably a scam. This is significantly lower than the national average (74%).
Colmar Brunton Page | 119
Consumer rights and responsibilities
Internet banking password
No-one should ever share their Internet banking password with another person. The following
question in this section was intended to test how well understood this ‘rule’ was.
Q46) Would it be alright to tell someone else your Internet banking password in the following
situations?
57%
51%
4%
3%
19%
12%
42%
46%
95%
96%
79%
86%
1
2
2
1
2
1
0% 20% 40% 60% 80% 100%
Yes Correct - No Don't know Don't understand
Alright to reveal internet banking password in these situations
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q46
Telling your partner so they can pay some bills
Telling your friend who has internet access so they can pay your bills
Telling a bank staff member if they ask for it in the branch
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
As with the national results, Ngāi Tahu respondents’ understanding of their responsibility to protect
their Internet banking password remains strongest in relation to the importance of not telling a friend
(95%).
However, in relation to telling a partner, 57% thought this was okay, which is significantly higher
than the national average (51%). Furthermore, 19% of Ngāi Tahu respondents incorrectly thought it
was okay to tell a bank staff member their password, which is significantly higher than the national
average (12%).
Colmar Brunton Page | 120
Financial advice
Respondents were asked:
Q47) I will read out a number of statements about getting financial advice and I would like you
to tell me whether you think the statement is true or false, or whether you don’t know.
Statements about getting financial advice
Base: All respondents Ngai Tahu (n=400), New Zealand (n=850)Source: Q47
Before handing money to a financial adviser, a person should ask about their qualifications and experience
Before investing, it is important to read and understand the investment
statement that explains details about the investment
It is important to find out how a financial adviser is being paid
94%
97%
94%
93%
76%
71%
75%
79%
2
2
3
13%
15%
4%
2
3
3
3
4%
10%
13%
19%
18%
2
1
0% 20% 40% 60% 80% 100%
Correct - True False Don't know Don't understand
A financial advisor has to give you a disclosure statement
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Ngai Tahu
New Zealand
Almost all (94%) Ngāi Tahu respondents correctly agreed that before investing, it is important to read
and understand the investment statement that explains details about the investment. This is
significantly lower than the national average (97%).
The same proportion of Ngāi Tahu respondents (94%) correctly agreed that before handing money to
a financial advisor, a person should be asked about their qualifications and experience, 76% agreed
that it is important to find out how a financial advisor is being paid, and 75% agreed that a financial
advisor has to give a disclosure statement. These are all consistent with the national results.
Colmar Brunton Page | 121
KiwiSaver
Respondents were asked a series of questions about KiwiSaver:
Q64) Are you a member of KiwiSaver?
If a member: Q65) What year did you become a member?
Q66) Are you currently contributing?
Q67) What percentage of your wages or salary are you personally contributing at the
moment? Please exclude any employer contributions.
The results are presented in the next two charts.
KiwiSaver – whether member and year became a member
Base: All respondents (n=400)Source: Q64
36%
63%1%
Yes No Don't know
Base: Respondents who are a member of KiwiSaver Ngai Tahu (n=151), New Zealand (n=229)Source: Q65
Year became a member
43%
51%
6%
n/a
52%
25%
18%
5%
0% 20% 40% 60%
2007
2008
2009
2010
Ngai Tahu New Zealand
In 2009, 29% of New Zealanders said they were members of KiwiSaver.
Base: All respondents (n=850)Source: Q64
Just over a third (36%) of Ngāi Tahu respondents are KiwiSaver members. This is a significantly
higher proportion when compared to the national results where only 29% said they were members in
2009. However, some of this difference is likely to be attributed to the continued growth in the
uptake of KiwiSaver in general.
Of the Ngāi Tahu respondents who are KiwiSaver members, just over half (52%) joined in 2007 with
slightly smaller proportions joining each subsequent year.
Colmar Brunton Page | 122
Analysis by knowledge group (among Ngāi Tahu respondents)
Ngāi Tahu KiwiSaver members tend to have higher levels of financial knowledge:
� 45% of Ngāi Tahu KiwiSaver members are in the High knowledge group compared to 37% of those who are not members
� 23% of Ngāi Tahu KiwiSaver members are in the Low knowledge group compared to 32% of those who are not members.
Analysis by Whai Rawa membership
Members of the Whai Rawa savings initiative are significantly more likely than non-members to be part of KiwiSaver (45% of Whai Rawa members c.f. 30% of non-members).
KiwiSaver – whether currently contributing and percentage personally contributing
Base: All respondents who are current KiwiSaver members (n=151)Source: Q66
81%19%
Yes No
Base: Respondents who are a member of KiwiSaver and currently personally contributing Ngai Tahu (n=123), New Zealand (n=192)
Source: Q67
6%
7%
7%
64%
15%
3%
10%
4%
4%
47%
32%
0% 20% 40% 60% 80%
Ngai Tahu New Zealand
Personal contribution
In 2009, 83% of New Zealanders said they were currently contributing to KiwiSaver.
Base: All respondents who are currently KiwiSaver members (n=229)Source: Q54a
2%
4%
8%
Not a wage earner
Other
Don’t know
Of the Ngāi Tahu respondents who are currently KiwiSaver members, around four in five (81%) said
that they are currently contributing to their KiwiSaver fund. This is consistent with the national
results.
Most respondents who said they are contributing, contribute 4% (47%) or 2% (32%). However,
when compared to the national results, Ngāi Tahu are significantly more likely to contribute 2% or
‘other’ and less likely to contribute 4%.